Duolingo Shares Rise 1.53% Despite 38.89% Volume Drop to $240M Ranking 414th as Google AI Threatens Market Position and Legal Scrutiny Intensifies

On August 28, 2025, Duolingo (DUOL) rose 1.53% despite a 38.89% drop in trading volume to $240 million, ranking 414th in market activity. The stock faces mounting challenges as Google Translate introduces AI-driven language-learning tools, potentially disrupting its core user base. Analysts highlight intensified competition from Google’s live translation and gamified lessons, which mimic Duolingo’s features.

Compounding risks, Pomerantz LLP launched an investor investigation into the company, raising concerns over potential legal or disclosure issues. Meanwhile, Q2 earnings showed a 41.5% revenue increase to $252 million, yet competitive pressures and regulatory scrutiny could weigh on long-term growth. Institutional investors have mixed activity, with some hedge funds adding to positions while insiders sold shares valued at $27 million in the last quarter.

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