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Duolingo facing the end?

For companies like $DUOL it is currently not an easy time. More and more big tech companies are launching new gadgets and features on the market to simplify translation and communication.

Mark Zuckerberg and $META (+0.05%) have just introduced a new live translation feature for their AI glasses. The integrated display shows the translated text directly in front of your eyes like subtitles.

And that's only after $AAPL (+3.49%) and ChatGPT have also already entered the market. As a reminder:

Apple: Real-time translation directly in AirPods → Users can communicate instantly in FaceTime, phone calls or messages without having to open a separate app.
ChatGPT: AI-powered translationintegrated directly into everyday life → Voice input, texts or conversations can be translated seamlessly without a learning app in the background.

What do you think: is the business model of #Duolingo under pressure? You can definitely see the fear of investors in the share price.

#aktien
#börse
#investieren
#duolingo
#meta
#rayban
#brille

15 Comments

DieEnte7@DieEnte7

So I see two sides:
For Duolingo's business model, I don't even see the danger as being that great. For many people I know who use it, it's more of a pastime that feels more meaningful than social media. I don't see this being jeopardized by AI in the slightest, rather the opposite. More time = more willingness to fill it and do something "meaningful" with it. That can be good for Duolingo.

But on the other hand, I've always had the impression that Duolingo is incredibly overrated. It's by no means a junk company, but I can't really justify the growth the market is expecting, despite the good business performance so far, and perhaps the news is now catching up with the company.

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NEWT@SteelAnacott

I've only been marginally involved with the numbers at $DUOL so far, but I've been using the app for years. Event-related translation and the intrinsic motivation to learn a language are two different things for me. For example, I am currently learning a foreign language purely out of interest, so having the AI translate everything for me would not be an option.
I can imagine that AI will take some of the market share away from $DUOL, but not that it will mean the end of it; the areas of application and customer segments are too different for that in my view.

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CantStopClicking@CantStopClicking

@SteelAnacott good point but I'd be really interested to know how many people do what you do. For example, I would never voluntarily learn a language and if I could save myself years of time through AI, I would do it immediately.

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Bernhard@burnheart

An exciting stock. Very good business figures and strong growth meet potential AI disruption. If you think the market is exaggerating here and DUOL has its justified niche, this is a good opportunity to get in. And for gamblers, there may be an exciting trade before the next quarterly figures :-)

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CantStopClicking@CantStopClicking

@burnheart What trade position are you taking here? And why? 🥸

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sakamotoo@sakamotoo

I can never see the daily graph here at $DUOL. Is it the same for you?

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CantStopClicking@CantStopClicking

@sakamotoo No, where do you make your charts? Everything works on TradingView ...

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Luffy@Luffy3D2Y

Yo. I can also learn a language via ChatGPT.

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GurkiHDx@GurkiHDx

@Luffy3D2Y What are you asking about?

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The W.@thewolfofallstreetz

Duolingo has 10x potential from here. The features mentioned are aimed at other target groups and use cases. Most Duolingo users are hobbyists and want to challenge their minds. These users couldn't care less about live translation. The growth of Duolingo will not be negatively affected by this in the long term. With AI, they develop courses >10x faster and they have by far the highest retention in the education sector. In my opinion, one of the best consumer apps ever built. After OpenAI and a few others, Duolingo is probably one of the few companies that is already making a lot of money with real AI features. The stock is currently not finding a bottom, but in 5-10 years it will probably be 10x higher.

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CantStopClicking@CantStopClicking

@thewolfofallstreetz I'm not sure that 130 million users use the app to pass the time. I can't imagine people hanging around there out of boredom lol but I'm probably a bit different and want to do something productive with my time after all 😅

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The W.@thewolfofallstreetz

@CantStopClicking Live translation is not the same as interactive education. What I want to say is that most Duolingo users want to learn a language out of passion and fun. You want to stay fit in your head, maybe because you're going on vacation or because you want to have better job opportunities, etc. Live translation does not make this obsolete. The CTO also recently mentioned that users were asked what they would do if Duolingo no longer existed. The answer: "I would spend more time on TikTok and Instagram." Duolingo is a "healthy snack". You can spend the time pointlessly on social media or invest 5min for Duolingo. Live translation doesn't make this urge go away.

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CantStopClicking@CantStopClicking

@thewolfofallstreetz really very exciting, I find it interesting, thanks for your input!

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The W.@thewolfofallstreetz

@CantStopClicking I look forward to the next quarterly figures to see to what extent the story changes or proves skeptics wrong. In the summer, they raised their guidance for the year as a whole.

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Susanne@Isus01010

Duolingo has recently introduced new features. AI has the potential to make the product even better. The first experiments with it are already taking place in the app. The question is what proportion of users will take out the Pemium subscription.
https://investors.duolingo.com/news-releases/news-release-details/duolingo-unveils-major-product-updates-turn-learning-real-world

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