Weak Overall Sentiment on Duolingo (DUOL) Drives Reduction in Its Q1 Estimates

Duolingo, Inc. (NASDAQ: DUOL) is included in our list of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts. Maxx-Studio/Shutterstock.com As of February 18, 2026, about 60% of covering analysts remain bullish, with the consensus price target of $250.00 implying a potential upside of 117.54%. This comes despite Duolingo, Inc. (NASDAQ:DUOL)’s rough start to 2026. On February 11, 2026, shares fell to a 52-week low of $112.41, marking a sharp 70% decline in just one year. Amid these developments, on February 3, 2026, Morgan Stanley reduced its price target on Duolingo, Inc. (NASDAQ:DUOL) from $275 to $245 while keeping its Overweight rating. The investment firm cited tactical caution ahead of earnings, noting that initial FY26 bookings may fall short of street estimates due to the focus on user growth. Morgan Stanley emphasised the possibility of better acquisition and retention as well as early indications of DAU stabilization. With a Neutral rating, DA Davidson also lowered its target on Duolingo, Inc. (NASDAQ:DUOL) from $205 to $170, stating that internal data tracking 170,000 users revealed that January’s m/m DAU increase was the largest since tracking started, though extrapolation indicates Q1 may fall roughly 4% below consensus. Duolingo, Inc. (NASDAQ:DUOL) offers language-learning platforms and educational tools, such as web and mobile applications, English assessments, and school-focused offerings, to global learners through gamification and crowdsourced translation. While we acknowledge the potential of DUOL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . READ NEXT: 14 Oversold Value Stocks to Invest in Right Now and  Cathie Wood’s 10 Stock Picks with Huge Upside Potential.