Duolingo’s Descent: A Fund’s Prudent Retreat

Duolingo Stock Image

Gilder Gagnon Howe & Co LLC, a firm not entirely unfamiliar with the capricious whims of the market, recently engaged in a bit of portfolio housekeeping. Specifically, they’ve relieved themselves of 66,397 shares of Duolingo, a company whose trajectory, shall we say, has been… spirited. A transaction valued at approximately $15.65 million, it’s a move that suggests even the most optimistic fund manager occasionally recognizes the scent of a changing wind.

A Bird in the Hand, and a Language in the Cloud

The fourth quarter of 2025 saw Gilder Gagnon’s Duolingo holdings diminish, a reduction compounded by the stock’s own independent decline. The fund’s total exposure to this purveyor of digital tongues decreased by a rather substantial $95.44 million – a figure encompassing both the sale and the stock’s rather precipitous tumble. One might almost suspect the algorithms themselves are staging a revolt.

Currently, Duolingo represents a mere 0.9375% of the fund’s 13F reportable assets. A small percentage, perhaps, but a percentage nonetheless. As we always say, even a sparrow with a grain of sand can build a mountain – or, in this case, a diversified portfolio.

The Usual Suspects

Let us briefly survey the fund’s remaining affections. As of the latest filings, their top holdings include:

NASDAQ:NVDA: $481.12 million (5.08% of AUM)
NASDAQ:AMZN: $415.39 million (4.38% of AUM)
NASDAQ:NFLX: $409.30 million (4.32% of AUM)
NASDAQ:SHOP: $350.66 million (3.70% of AUM)
NYSE:NET: $345.89 million (3.65% of AUM)

A respectable assembly, though one wonders if they’re all equally adept at navigating the currents of modern finance.

A Stock in Decline

As of February 13, 2026, Duolingo’s shares were trading at $112.57 – a rather dramatic descent from previous heights. Over the past year, the stock has underperformed the S&P 500 by a staggering 85.63 percentage points. One begins to suspect the lessons being taught aren’t about language, but about risk.

By the Numbers

For the statistically inclined:

Metric	Value
Price (as of market close 2026-02-13)	$112.57
Market capitalization	$5.21 billion
Revenue (TTM)	$1.04 billion
Net income (TTM)	$414.07 million

Impressive figures, to be sure. But numbers, as any seasoned speculator knows, are merely the scaffolding upon which fortunes are built – and occasionally, dismantled.

A Brief History of Linguistic Ambition

Duolingo, for those unfamiliar, offers a digital platform for language learning, boasting courses in over 40 languages and a proprietary proficiency exam. A noble endeavor, certainly. Though one can’t help but wonder if mastering Klingon is truly a path to financial security.

The Art of the Exit

Gilder Gagnon’s involvement with Duolingo dates back to the company’s IPO in mid-2021. A period marked by exuberance, naturally. The stock soared, then stumbled, then plummeted. A classic tale of speculative excess. The fund, displaying a commendable degree of prudence, began to steadily reduce its position. A wise move, given the prevailing winds. The timing of the sale remains undisclosed, but the shares likely traded within the $175 to $353 range during the fourth quarter. A tidy profit, one imagines.

It’s worth noting that the sale reduced their holdings by only 15%. They still retain a significant stake. A testament, perhaps, to a lingering belief in the company’s long-term potential. Or simply a reluctance to admit a mistake. We shall see.

In conclusion, Gilder Gagnon’s actions suggest a pragmatic approach to portfolio management. A blend of optimism and caution. A recognition that even the most promising ventures can encounter turbulence. And a willingness to adjust course when necessary. A skill, one might say, that separates the captains of finance from the shipwrecked dreamers.

2026-03-07 00:33