Duolingo Shares Tumble 2.57% as Google AI and Legal Risks Sink $490M Market Activity to 210th Rank

On September 3, 2025, Duolingo (NASDAQ: DUOL) shares fell 2.57% with a trading volume of $490 million, ranking 210th in market activity. The decline followed intensifying competition from Google’s AI-driven language tools, a pending class-action investigation, and insider sell-offs by key executives, including General Counsel Stephen Chen and CFO Matthew Skaruppa. Market analysts highlighted macroeconomic pressures and profit-taking as additional factors weighing on investor sentiment.

The company announced a strategic expansion into music education, launching interactive gamified lessons to teach reading and playing music. This follows previous diversification into math and reflects Duolingo’s broader vision to leverage its platform for multidisciplinary learning. The feature, set for a full rollout ahead of its annual conference on October 11, aims to capitalize on the app’s established user engagement model, which emphasizes bite-sized, streak-based learning.

Backtesting results indicated a 70% faster reading growth rate for users spending 30 minutes weekly on AI-assisted tools like Amira Learning. However, Duolingo’s stock performance remained under pressure as investors weighed risks from regulatory scrutiny, competitive threats, and broader market volatility tied to AI sector corrections.