Duolingo (NASDAQ:DUOL) shares fell more than 7% to about $299 in late-morning trading on Friday after Google revealed new artificial intelligence-powered live translation and language learning tools.
The move is a potential threat to Duolingo’s growth and user base in the space.
Duolingo’s language-learning app has an estimated 130 million active users.
Google Translate’s newly integrated features include a language practice tool that uses Gemini AI models to create customized listening and speaking sessions, adapting to a user's skill level.
“Just having conversations in French on something like ChatGPT gets pretty boring after a while. It doesn’t keep you there. We keep you on task with all the gamification,” Duolingo CEO Luis von Ahn said in a recent interview with the New York Times.
Duolingo’s CEO noted that the company’s daily active users climbed 40% year over year in the second quarter of 2025.
He added that only about 10% of Duolingo’s users are paying customers.
In early August, the company boosted its full-year guidance and issued a rosier third-quarter forecast as it benefits from AI-driven growth.
Duolingo’s Q2 revenue rose about 41% year over year to a better-than-expected $252 million.