Duolingo shares plummet as AI pitch falls flat, bookings estimates miss
Shares in the language-learning app Duolingo (DUOL) plummeted on Thursday, falling more than 25% as an AI-heavy pitch from the company fell flat with investors and the company lowered its guidance on bookings.
Duolingo, which has leaned into pitching itself as an AI-forward company in recent months, posted third quarter sales of $271.1 million against analyst estimates of $260.3 million. But several negative measures dragged shares downward.
The company lowered its bookings forecast for the fourth quarter to a range of $329.5 million to $335.5 million, below analyst estimates of $343.6 million. Meanwhile, Duolingo also missed on estimates on user growth in the third quarter, ticking up to 50.5 million daily active users against analysts’ estimates of 51.1 million users.
From @FuckyWucky@hexbear.net’s comment in the news mega.
Help me understand this. They actually grew through all the AI nonsense but the investors are unhappy because the forecasts promised more growth?
The stock fell 25% because estimates for some indicators were 1% higher then what actually happened
yeah what the fuck is going on here? are venture capitalists dropping Duolingo whilst holding onto shit like openAI that is actively burning their cash for revenge porn tiktok?
On their dead internet theory episode QAA brought up the idea of a dead economy. That it’s all just AIs buying AI stocks. The idea isn’t new but I haven’t heard that name before.
My post from a few weeks ago about the Self Aware Bubble might have been affecting the lathe
Well robo investing isn’t new for sure, and has randomly collapsed stock exchanges in flash panics in the past. It would he the first for one to be localised to a single company though.
If it really was AI doing all the trades (and not the statistical analysis models, the LLMs plugged into Bloomberg terminals) then that’s a LOT of money being thrown about by some dipshits fr fr
Wall street has always been a LOT of money being thrown about by some dipshits fr fr
Algorithm trading has been around for a while now.
Happy that Nate Silver found a new career.
die, bird
