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CHONGQING, CHINA - FEBRUARY 23: In this photo illustration, the Duolingo logo is displayed on a smartphone screen (Photo by Cheng Xin/Getty Images) Getty Images Duolingo (DUOL) has been a top performer in edtech, but after a strong run, the stock is losing momentum. The recent drop raises a key question for investors: is this a healthy pullback or the start of a deeper correction? The stock has declined by 21.5% in less than a month, dropping from $347.27 on 10/8/2025 to its current price of $272.76. What lies ahead? It appears that the stock may decrease further. The existing correction, when contextualized with the stock's Very High valuation, indicates the potential for more downside. A price of $192 is not beyond possibility, particularly given that the stock has reached this level at least once in the past 5 years. Therefore, should you delay your purchase before taking advantage of this dip? Perhaps. Timing dips perfectly is not an exact science. Still, here is another viewpoint on DUOL stock that may assist you in making your decision. The stock has historically returned a median of 87% in one year, and has produced 87% as its peak return after significant dips (>30% in 30 days). For a brief overview, DUOL offers a language-learning platform featuring courses in 40 languages, accessible via both website and mobile app, primarily catering to users in the U.S. and China. For more information on stock fundamentals and assessments: Read Buy or Sell Duolingo Stock to gain a comprehensive understanding. Investing in a single stock may involve risks, but adopting a broader, diversified strategy holds substantial advantages. Proper asset allocation and diversification can maintain your investment journey. Were you aware that investors who panicked and exited the S&P in 2020 missed out on considerable growth afterwards? Trefis offers a High Quality Portfolio and a proof-based asset management approach designed to minimize volatility, enabling you to stick with your strategy. Historical Median Returns Post Dips Median Returns Post Dips MORE FOR YOU Historical Dip-Wise Details DUOL had 5 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered 87% median peak return within 1 year of dip event 356 days is the median time to peak return after a dip event -7.5% median max drawdown within 1 year of dip event Dip-wise details Duolingo Passes Basic Financial Quality Checks Revenue growth, profitability, cash flow, and the strength of the balance sheet must be assessed to lessen the risk of a dip signifying a declining business scenario. Financial Metrics Buying during dips, while appealing, should be carefully analyzed from various viewpoints. This multi-faceted evaluation is exactly how we compile the Trefis High Quality (HQ) Portfolio, featuring 30 stocks that have a demonstrated history of comfortably outperforming their benchmark, which encompasses the S&P 500, S&P mid-cap, and Russell 2000 indices. What accounts for this? As a collective, HQ Portfolio stocks have yielded superior returns with diminished risk compared to the benchmark index; less volatility, which is evidenced in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
