• Pomerantz LLP investigates Duolingo securities fraud claims
• JMP Securities lowers Duolingo price target to $450
• Concerns over slowing user engagement ahead of Q2 earnings
• Third-party data shows 39% YoY daily active user growth
• Duolingo stock price falls 6.48% to $340.49 per share
New York, July 2, 2025 - Pomerantz LLP, a leading law firm specializing in corporate, securities, and antitrust class litigation, has announced an investigation into claims on behalf of Duolingo, Inc. (NASDAQ: DUOL) investors. The investigation focuses on potential securities fraud or other unlawful business practices by Duolingo and its officers or directors [1].
The investigation comes amid a series of analyst downgrades and falling stock prices. JMP Securities recently lowered its price target on Duolingo stock to $450 from $475, citing concerns over slowing user engagement ahead of the company's second-quarter earnings report [2]. Third-party data indicated that daily active user growth decelerated to approximately 39% year-over-year in the second quarter, a noticeable drop from about 51% in the first quarter. This news led to a significant decline in Duolingo's stock price, which fell $23.60 per share, or 6.48%, to close at $340.49 on July 28, 2025 [2].
Pomerantz LLP, with a history of recovering multimillion-dollar damages for class members, is advising investors to contact Danielle Peyton at 646-581-9980, ext. 7980, or via email at newaction@pomlaw.com for more information about joining the class action [1].
This investigation highlights the ongoing scrutiny of Duolingo's financial performance and the potential for regulatory and legal challenges. Investors are urged to stay informed and review their investment portfolios accordingly.
References:
[1] https://www.prnewswire.com/news-releases/investor-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-duolingo-inc---duol-302525746.html
[2] https://www.marketscreener.com/news/pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-insperity-inc-nsp-ce7c5ed2d18dff24
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