Post-Pandemic Shifts: Why Duolingo, Expedia, and Airbnb Stocks Face Headwinds

The recent decline in stocks of Duolingo, Expedia, and Airbnb has sparked investor concern, despite the post-pandemic resurgence in travel and digital learning. This divergence highlights a critical shift in consumer spending and digital engagement patterns, reshaping the competitive landscapes of these sectors. By dissecting the interplay between macroeconomic pressures and evolving consumer priorities, we uncover why these companies face challenges even as their industries appear to thrive.

The Travel Sector: Rebound Overshadowed by New Challenges

The travel industry has experienced a remarkable rebound, with demand surging past pre-pandemic levels. A McKinsey report finds 66% of surveyed travelers now prioritize travel more than before the pandemic, driven by younger generations willing to allocate a larger share of their income to experiences. Domestic travel is projected to dominate, accounting for 70% of spending by 2030. However, this optimism clashes with structural headwinds.

For Expedia and Airbnb, the rise in personalized travel expectations has introduced operational complexities. As noted in a Forbes analysis, 57% of consumers prioritize tailored experiences over cost, forcing platforms to invest heavily in dynamic pricing, flexible booking policies, and customer engagement technologies. Meanwhile, average hotel rates during peak seasons have spiked to $1,600 per night, squeezing profit margins as travelers seek alternatives like short-term rentals. While Airbnb benefits from this trend, its stock has dipped due to regulatory pressures and market saturation in key regions. Expedia, meanwhile, faces margin compression from price wars and the rising cost of customer acquisition.

Online Education: Growth Amid Economic Uncertainty

Duolingo's stock has underperformed despite Research.com data projecting the global elearning market's growth from $227.34 billion in 2023 to $740.46 billion by 2032. The company's strength lies in its accessibility and alignment with microlearning trends, yet macroeconomic factors are tempering demand. Morgan Stanley notes that U.S. consumer spending is expected to slow in 2025 and 2026 due to inflation, tariffs, and economic uncertainty. As discretionary spending tightens, consumers may deprioritize non-essential educational tools, even as digital learning remains a long-term trend.

Moreover, the online education sector is becoming increasingly competitive, fragmenting the market, according to Research.com. Universities and MOOC platforms are offering micro-credentials that directly align with workforce needs, fragmenting the market. Duolingo's focus on language learning, while valuable, may not address immediate career advancement goals as effectively as niche vocational platforms.

The Digital Engagement Divide

Digital engagement trends further exacerbate these challenges. In travel, platforms like Expedia and Airbnb are leveraging AI-driven personalization and contactless technologies to restore traveler confidence, according to McKinsey. However, these innovations require significant capital investment, which may not immediately translate to profitability. Conversely, Duolingo's reliance on mobile-first, gamified learning has kept it relevant, but rising user acquisition costs and competition from free educational resources are eroding its growth potential, according to Research.com.

Conclusion: Navigating the New Normal

The post-pandemic era has redefined consumer behavior, creating both opportunities and risks for these companies. While the travel sector's recovery is robust, Expedia and Airbnb must navigate margin pressures and evolving customer expectations. For Duolingo, the challenge lies in sustaining growth amid economic headwinds and a crowded market. Investors should monitor how these companies adapt to shifting priorities-such as sustainability in travel or skill-based learning in education-to determine their long-term resilience.