oversold

103394041 : not earning issue… it is under seige due to ai competition by chatgpt

Montreal720 OP 103394041 : ai is no threat for duolingo, who would genuinely go out of their way to get AI to produce a course for learning a language. Duolingo has such a bigger moat over AI as they have gamified the learning process. The current movement in my opinion is an overreaction to nee AI

G同学 : Its price already reflects Duolingo's high growth, and even after a significant decline, it still has a PE ratio of 131. Its level of aggressive investment exceeds that of Nvidia and once even surpassed that of Palantir. When there is even a slight deviation from expectations, such as AI potentially eroding a small portion of its market share (I believe some people will opt for AI due to its superior performance, given that the MAX membership fee for Duolingo is higher than most AI services), it should not be surprising if the stock experiences a sharp sell-off, possibly plummeting to very low levels, as this has happened many times with high-growth companies. In the short term, as long as the company can maintain its high growth, it will have opportunities to continue reaching new highs. However, in the long term, once signs of slowing growth appear, the stock price will drop very quickly, returning to a more reasonable PE level.

Montreal720 OP G同学 : their PE is currently at a low compared to the past year and their revenue, memberships and profits are all way up, they arent slowing down