DUOL

Duolingo Inc. Technology - Education Investor Relations โ†’

YES
42.7% BELOW
โ†“ Approaching Was -35.6% last week
-15% -10% -5% 0% 5% 10% 15%+
Buy Threshold $208.33
14-Week RSI 15 ๐Ÿ“‰

Duolingo Inc. (DUOL) closed at $119.40 as of 2026-02-02, trading 42.7% below its 200-week moving average of $208.33. This places DUOL in the extreme value zone. The stock is currently moving closer to the line, down from -35.6% last week. With a 14-week RSI of 15, DUOL is in oversold territory.

Over the past 188 weeks of data, DUOL has crossed below its 200-week moving average 2 times. On average, these episodes lasted 24 weeks. Historically, investors who bought DUOL at the start of these episodes saw an average one-year return of +22.9%.

With a market cap of $5.5 billion, DUOL is a mid-cap stock. The company generates a free cash flow yield of 4.9%. Return on equity stands at 36.2%, indicating strong profitability. The stock trades at 4.2x book value.

Share count has increased 17.4% over three years, indicating dilution. DUOL passes our Buffett quality screen: high return on equity, low debt, and positive free cash flow.

Over the past 3.7 years, a hypothetical investment of $100 in DUOL would have grown to $130, compared to $176 for the S&P 500. DUOL has returned 7.4% annualized vs 16.7% for the index, underperforming the broader market over this period.

Free cash flow has been growing at a 346.8% compound annual rate, with 4 consecutive years of positive cash generation. A business generating more cash every year while trading below its 200-week moving average is exactly the kind of disconnect value investors look for.

Growth of $100: DUOL vs S&P 500

Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.

What Happens After DUOL Crosses Below the Line?

Across 2 historical episodes, buying DUOL when it crossed below its 200-week moving average produced an average return of +50.0% after 12 months (median +50.0%), compared to +13.0% for the S&P 500 over the same periods. 100% of those episodes were profitable after one year. After 24 months, the average return was +77.0% vs +38.0% for the index.

Each line shows $100 invested at the moment DUOL crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.

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Historical Touches

DUOL has crossed below its 200-week MA 2 times with an average 1-year return of +22.9% after recovery.

Crossed BelowRecoveredWeeksMax Depth1-Year ReturnReturn Since Touch
Jul 2022Feb 20233437.5%+22.9%+8.5%
Nov 2025Ongoing14+42.7%Ongoing-40.7%
Average24โ€”+22.9%โ€”

Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.

Data as of Friday close, 2026-02-02