DUOL - Duolingo Inc.

Joe argues Duolingo faces existential threats: Google offers similar translation tools for free, and AI-powered live translators are reducing the demand for learning foreign languages. He cannot imagine Duolingo still being a company in 5 years.

Stock down 80% from highs, fundamentals are good, but moat is under threat from AI. Speaker is not comfortable with the industry and stays away. Forward P/E of 38 is not that cheap after tax adjustments.

Host says 'don't go near that name' - sell-off has been warranted due to slower growth and declining customer activity. More concerned about Duolingo than ServiceNow.

Host notes Duolingo has 52 million daily active users and $360M in free cash flow, stating it's 'not going to zero.'

Language learning may become obsolete with AI translation; technology eliminating need for language skills. He would dump the stock.

Crossed 50M daily active users with cheap word-of-mouth growth, $1B revenue in 2025 (up 39% YoY), $360M free cash flow, over $1B cash and zero debt. Stock was beaten down on slower 2026 growth guidance, but the slowdown is due to deliberate pullback in monetization to grow the user base long-term. Host calls it 'one of the most obvious buys right now.'

Mentioned as up 5.8%, part of the software/tech rebound. No explicit recommendation.

Hosts are bearish on Duolingo after a disastrous guidance cut — revenue growth slowing from 39% to 15-18%, bookings growth from 33% to 10-12%, margins contracting. The company is deliberately deprioritizing monetization to grow users. Neil calls himself a 'bag holder.' The hosts also express concern about AI disruption to Duolingo's core language learning business.

Down 80% from its high. Joe argues its moat is essentially just brand, and its functionality can be replicated for free by ChatGPT and other AI tools.

Valuation has come down, it's a fast grower with high margins, but concerns about AI translation services disrupting the business model. Tanner not touching it but acknowledges the story isn't dead.