Duolingo’s stock has seen a significant decline, dropping over 81% from its peak of $529.05 in May 2022 to $100.51 today, despite the company surpassing $1 billion in revenue in 2025 and reaching 50 million daily active users. CEO Luis von Ahn had initially positioned the company as “AI-first,” using AI metrics in employee performance reviews. However, following employee feedback questioning the necessity of using AI, von Ahn announced that AI use would no longer be considered in evaluations. He emphasized that the focus should be on job performance rather than AI utilization. Despite this shift, Duolingo continues to implement some AI-related strategies, such as limiting contractor hiring where AI can handle tasks. The company’s recent innovation, a chess course developed through AI-assisted “vibe coding,” has become its fastest-growing offering, attracting seven million daily active users.
Why It Matters
The fluctuation in Duolingo’s stock price reflects broader trends in the tech industry, where companies face scrutiny over AI integration and employee satisfaction. The decision to move away from AI metrics in performance reviews highlights the challenges organizations encounter when adopting new technologies, particularly in balancing innovation with employee concerns. Duolingo’s successful chess course, developed through AI means, demonstrates the potential for AI to enhance product offerings, but it also raises questions about the company’s workforce dynamics and strategic direction amidst changing market conditions. The situation illustrates the complexities of navigating growth in a rapidly evolving digital landscape.
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