Duolingo’s 66% price drop from May highs creates a rare entry point.
Costco’s 92% to 93% membership renewal rate proves customers will literally pay for the privilege of shopping there.
10 stocks we like better than Duolingo ›
I’ve been wrong about plenty of stocks over the years, but I’ve also learned to trust my gut when conviction meets opportunity.
Today, I’m putting my money where my mouth is with two companies I know inside and out. I’ve been a loyal customer of the first one since Hurricane Irma in 2017 (paper towels, anyone?). For the other, I’m a curious user who’s watched it transform from a quirky app into something much bigger.
These aren’t momentum plays or meme stocks. They’re businesses building lasting value in ways the market doesn’t fully appreciate yet. Well, the market doesn’t appreciate one of them. Some would say it loves the other one too much — but it richly deserves the investor passion.
Image source: Getty Images.
Duolingo (NASDAQ: DUOL) is a tempting buy right now for patient long-term investors like yours truly. I’m a Duolingo shareholder since the summer of 2021, and my unbroken streak of daily language lessons goes back to June 2016. I have high hopes for this company’s long-term growth plans, and every price dip looks like a buying window.
That’s exactly what I see in Duolingo’s stock on Dec. 4. Share prices reached an all-time high of $545 in May, but have backed down 66% from that peak.
I’ll admit that the stock still doesn’t look cheap by traditional value metrics, trading at 8.9 times sales at the moment. At the same time, the price-to-earnings ratio (P/E) is down to an all-time low of 23.6. That metric used to show triple-digit figures, averaging 157 over the last year and a half.
The company is knee-deep in an ambitious strategy shift. Duolingo used to focus on grabbing as many users as possible, as fast as possible. Everything else was an afterthought or a bonus.
Since the Q3 2025 report, Duolingo is officially optimizing its business for sustainable long-term success. User…
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