The language-learning app Duolingo has recently found itself at the center of a storm, as its stock price took a significant hit following reports of weakening growth metrics.

According to a recent analysis by Investors Business Daily, Duolingo’s stock dropped sharply after data revealed a slowdown in user growth and engagement, raising concerns among investors about the company’s long-term prospects. The report highlighted that daily active user (DAU) growth, a key metric for the platform, has decelerated in recent quarters, prompting analysts to question whether the app’s once-robust expansion is hitting a wall.

This downturn comes at a time when Duolingo is already grappling with internal and external challenges tied to its strategic direction. As reported by Investors Business Daily, the company’s shift toward an “AI-first” approach—intended to streamline content creation and enhance user experience—has not yielded the expected financial or operational boosts. Instead, it has sparked a backlash that may be contributing to the slowdown in user metrics, with some investors fearing that the focus on artificial intelligence could be alienating core users who value the app’s human-driven, gamified learning model.

AI Strategy Under Fire

Earlier coverage by WebProNews shed light on the mounting criticism of Duolingo’s AI pivot, particularly targeting CEO Luis von Ahn’s public endorsement of the technology as the future of the platform. The decision to replace human translators and content creators with AI tools led to significant layoffs and contractor cuts, sparking outrage among employees and users alike. Many loyal users expressed frustration over perceived declines in content quality, with some even deleting the app after years of consistent use.

WebProNews further detailed how the backlash forced Duolingo to reconsider its approach. In response to the outcry, the company announced a partial rollback of its AI strategy, promising to reintegrate human oversight into content development. However, this reversal has done little to reassure investors, who now see a company caught between innovation and maintaining user trust—a balancing act that appears to be impacting growth.

Growth Metrics and Market Reaction

The numbers tell a stark story. Investors Business Daily noted that while Duolingo had previously reported impressive DAU growth rates, recent data shows a troubling decline, with growth slipping below analyst expectations for the second quarter of 2025. This slowdown has fueled a broader narrative of saturation in key markets, where the app may be struggling to attract new users while retaining existing ones amid competitive pressures and changing user preferences.

Wall Street’s reaction has been swift and unforgiving. The stock’s decline reflects a broader skepticism about Duolingo’s ability to navigate these challenges without sacrificing its growth trajectory. Analysts cited by Investors Business Daily suggest that the company must address both the operational missteps tied to its AI strategy and the broader market dynamics if it hopes to regain investor confidence.

Looking Ahead

The road ahead for Duolingo remains uncertain. While the company has taken steps to mitigate the fallout from its AI push, as noted by WebProNews, the damage to user sentiment and investor trust may take longer to repair. Industry observers are watching closely to see whether Duolingo can strike a balance between leveraging cutting-edge technology and preserving the human touch that made it a beloved tool for millions.

For now, the company’s leadership faces a critical test. Restoring growth will require not just strategic recalibration but also a renewed focus on user experience. As the language-learning market grows increasingly crowded, Duolingo’s ability to adapt without losing its core identity will determine whether this stock drop is a temporary setback or a sign of deeper troubles.