INVESTIGATION NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Duolingo

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced an investigation into potential claims on behalf of investors in Duolingo, Inc. (NASDAQ: DUOL). This follows a significant decline in Duolingo’s stock price, which plummeted by as much as 22% on February 27, 2026, after the company revealed plans for slower earnings growth and reduced profit margins in the short term. The announcement, made by CEO Luis von Ahn in a letter to shareholders, indicated that Duolingo would prioritize increasing its subscriber base over immediate profitability, particularly through heightened investment in artificial intelligence. The company aims to double its daily active users to 100 million by 2028, a goal that will necessitate sacrificing some monetization efforts.

Despite the long-term vision, the immediate outlook is challenging, with projected first-quarter adjusted EBITDA falling below analyst expectations. Duolingo noted a mere 30% increase in daily active users over the past year—the slowest growth rate in four years.

Investors who have experienced significant losses due to Duolingo’s stock performance are encouraged to reach out to Faruqi & Faruqi to explore their legal options. The firm, which has successfully recovered hundreds of millions for clients since its inception in 1995, aims to provide guidance to affected investors. Interested parties can learn more about the investigation and their rights by contacting partner Josh Wilson at the firm directly.

For continuous updates, investors can follow Faruqi & Faruqi on various social media platforms. Note that the firm emphasizes that prior legal outcomes do not guarantee similar results in future cases, and all communications will be handled confidentially.

In light of recent developments involving Duolingo, Inc. (NASDAQ: DUOL) and the ongoing investigation led by Faruqi & Faruqi, LLP, investors should approach the company's stocks with a nuanced strategy. Following a significant drop of up to 22% in share price after Duolingo's announcement about prioritizing subscriber growth over profit in the short term, it is clear that the market is responding strongly to changes in corporate strategy.

The company aims to invest heavily in artificial intelligence to improve user engagement, with the ambition of doubling its daily active users by 2028. However, this approach has raised concerns regarding immediate earnings potential, underscoring a broader theme in the tech sector—balancing growth with profitability. As Duolingo anticipates slower earnings growth and narrower profit margins, investors should evaluate their exposure to the stock through the lens of their risk tolerance and investment horizon.

If you are currently holding Duolingo stocks and are feeling adverse effects due to the recent price drop, it might be prudent to assess your position critically. Consider whether Duolingo's long-term growth potential aligns with your investment goals, especially as it anticipates earnings below analyst expectations for the first quarter.

For investors who have suffered significant losses and are contemplating legal options, reaching out to legal experts such as Faruqi & Faruqi could be a wise move. Engaging with experienced attorneys can provide insights into any recourse available due to potential securities law violations.

Ultimately, maintaining a watchful eye on Duolingo’s execution of its growth strategy, alongside broader market trends, will be essential in making informed investment decisions in the coming months.