How Low Can Duolingo Stock Go In A Market Crash

DUOL: Duolingo logo
DUOL
Duolingo

Duolingo has historically underperformed the S&P 500 during major market crashes, with an average decline of 61%. During the Inflation Shock, it fell 69% compared to the S&P’s 25%, and during the Covid pandemic, it dropped 53% against the S&P’s 34%. The stock took an average of 6 months to reach its lowest point, with peaks at 3 months during Covid and 8 months during the Inflation Shock. Recovery times were lengthy, taking 18 months after the Inflation Shock and 23 months post-Covid. This pattern underscores Duolingo’s vulnerability and sensitivity to market downturns, indicating a lack of resilience in volatile environments.

Duolingo Stock Performance In Market Crashes:

DUOL S&P 500
Covid Pandemic
% Change from Pre-Recession Peak -53% -34%
# of Months for Full Recovery 23 5
Inflation Shock
% Change from Pre-Recession Peak -69% -25%
# of Months for Full Recovery 18 15

Worried that DUOL is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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