🔴 Duolingo is trading 11.3% down today as AI investment guidance pressures margins despite Q2 beats

Duolingo is trading 11.3% down at $120.00 in after-hours trading after the company signaled that aggressive AI investments will weigh on near-term margins.

• Despite beating revenue and EPS estimates and reporting accelerated daily active user (DAU) growth, management is prioritizing long-term scaling over immediate margin expansion.
• Guidance indicates that the costs associated with rolling out new AI-driven features will continue to pressure profitability through the end of the year.