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Analyst Says Buy Struggling Duolingo Stock

The stock is still struggling on a year-to-date basis

Deputy Editor
Mar 18, 2025 at 10:08 AM
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Duolingo Inc (NASDAQ:DUOL) stock is up 0.8% at $296.39 at last check, after JMP Securities upgraded the language-learning platform to "outperform" from "market perform." The firm pointed to the potential growth of Duolingo Max subscriptions as a key driver for future gains, while also highlighting the stock’s attractive valuation as a bullish catalyst.

On the charts, DUOL is still struggling with the $300 level, which moved in as resistance following a steep 17% post-earnings pullback in late-February. The security has also been struggling with pressure from its 100-day moving average, and is down 9.3% since the start of 2025.

Coming into the session, nine of 17 covering brokerages rated the security a "hold," which leaves room for even more upgrades to roll in. Meanwhile, options traders are more bullish, per DUOL's Schaeffer's put/call open interest ratio (SOIR) of 0.58, which sits in the lowest possible percentile of reading from the past 12 months. 

Options are an intriguing way to bet on the stock right now, as it tends to outperform volatility expectations. This is per Duolingo stock's Schaeffer's Volatility Scorecard (SVS), which sits at an elevated 83 out of 100.  

 

 

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