BUZZ-Duolingo drops after brokerages downgrade on pivot from monetization to user growth

Reuters03-02
BUZZ-<a href="https://laohu8.com/S/DUOL">Duolingo</a> drops after brokerages downgrade on pivot from monetization to user growth

** Shares of language learning platform Duolingo DUOL.O fall 3.49% to $97.48 premarket after brokerages downgrades ratings, cut PT

** Citigroup downgrades to "neutral" from "buy"; cuts PT to $101 from $270

** "We are downgrading following its new strategic direction to prioritize user growth over monetization/subscription growth with 2026 a transition year," Citigroup says

** Truist Securities downgrades to "hold" from "buy"; cuts PT $100 from $245

** "We view the company's shift towards user growth as a long-term prove-it story until investors can see reasonable proof points on the path to 100M DAUs (Daily Active Users) by 2028," Truist says

** Barclays cuts PT to $110 from $230, which is still 8% upside to stock's last close

** Eight of 25 analysts rate stock "strong buy" or "buy", 16 "hold" and one "sell"; their median PT is $110.5 - data compiled by LSEG

** As of last close, DUOL down 42.45% YTD

(Reporting by Pragyan Kalita in Bengaluru)

((Pragyan.Kalita@thomsonreuters.com;))

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