Duolingo rated Buy as AI boosts margins and user growth targets 100M daily users by 2028

Duolingo is rated a Buy due to accelerating user growth and improved efficiency from AI, which has increased margin forecasts. The company prioritizes expanding its user base over immediate profits, aiming for 100 million daily active users by 2028, representing a 24% annual growth rate. AI-driven cost savings and product enhancements have raised expected gross margins to 70% and EBITDA margins to 26.5%. While monetization may lag in the short term, the long-term growth potential is significant.