Duolingo Slides After It Says Profits to Slow for User Growth

Duolingo Inc. shares tumbled as much as 22% in post-market trading after the company said its drive to gain subscribers would mean slower earnings growth and narrower profit margins in the short term.

The language-learning app company said it would step up investment in artificial intelligence and sacrifice some degree of monetization in order to accelerate user growth and engagement, with the goal of doubling the current number of daily active users to 100 million in 2028.