BUZZ-Duolingo shares surge due to optimistic annual revenue forecast

November 4 - ** The language learning platform Duolingo (DUOL.O) saw its stock price rise 19.2% in pre-market trading to $153.50

** Third quarter daily active users (DAU) increased by 29% year-over-year. CEO Luis von Ahn said this was driven by strong user growth globally (link)

** The company reported third quarter bookings of $316.1 million, up from $281.9 million a year earlier

** Wells Fargo upgraded DUOL from "underweight" to "equal weight," noting that management has demonstrated that brand partnerships, real-time operations, and product improvements can replace viral marketing and drive growth in daily active users. The price target was also raised from $80 to $120

** At least nine brokerages, including Wells Fargo, have raised their price targets for DUOL following the earnings report

** According to data compiled by London Stock Exchange Group (LSEG), the company is expected to post revenue of $1.22 billion in fiscal year 2026, slightly above analysts' estimate of $1.21 billion

** Third quarter revenue was $309 million, beating expectations of $303.2 million

** Of 25 brokerages, 6 have given the stock a "buy" or higher rating, 18 rated it "hold," and 1 rated it "sell"; the median price target is $135—LSEG data

** As of the previous trading day’s close, the stock was down 27.1% year to date

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