Duolingo's Trading Volume Drops 35.91% to $280 Million Ranking 332nd Despite Stock Price Rise

On May 22, 2025, Duolingo's trading volume reached $280 million, marking a 35.91% decrease from the previous day. This placed Duolingo at the 332nd position in terms of trading volume for the day. Despite the overall market downturn, Duolingo's stock price rose by 0.68%.

Citron Research has expressed concerns about the impact of Google's new AI translation tool on Duolingo's market position. The firm argues that the introduction of advanced AI tools could significantly alter the language learning landscape, potentially reducing the need for traditional language learning platforms like Duolingo. This perspective suggests that Duolingo may face increased competition and challenges in maintaining its market share.

In response to the AI shift, Duolingo has been focusing on retraining its workforce and equipping employees with more AI tools. The company aims to leverage AI to enhance its services rather than reduce costs, indicating a strategic adaptation to the evolving technological landscape. This approach could help Duolingo stay competitive in the face of new AI-driven competitors.

Google's AI tool has been highlighted as a significant challenge to Duolingo's market position. The tool's advanced capabilities could potentially disrupt the language learning market, forcing Duolingo to innovate and adapt to maintain its relevance. The introduction of AI-powered tools in the education sector is part of a broader trend, with AI being used for career guidance, skills gap analysis, and virtual apprenticeship platforms.