Duolingo shares on NASDAQ have plummeted 45% in the last month, triggering a decline in retail investor sentiment. Despite a 41% revenue increase to $252M, the company missed revenue estimates. Co-founders sold stock before the drop, causing skepticism about the stock’s future.

A viral post on Reddit titled “Duolingo Got Creamed and I Still Think It’s Overvalued” dominated discussions on investment forums. The earnings report showed revenue growth to $252.27 million and a surge in daily active users, but missed analyst estimates. Marketing expenses could triple for user acquisition, impacting margins.

Concerns over Duolingo’s future include low marketing spending compared to competitors, loss of creative talent, and a declining user experience. Co-founders sold significant shares before the stock decline, avoiding losses. No insiders have bought shares at current prices, leading to investor concern.

Despite the negative sentiment, investors are advised to watch for changes in marketing expenses, social media strategy, and talent retention. Management’s response to the valuation disconnect will be crucial. Retirement planning is also highlighted, with many Americans realizing they can retire earlier than expected by answering three simple questions.

Read more at Yahoo Finance: Investors Hate DUOL Stock Now