Duolingo is under attack. Can it survive?

Despite the challenging macro environment, some companies continue to perform exceptionally well, and Duolingo ($DUOL), the parent company of the popular language learning app, is a shining example.

DUOL has impressed investors this year with its consistent top-line growth and excellent operating leverage. Wall Street has rewarded the company, driving its stock up by more than 110% year-to-date.

However, yesterday, DUOL stock plunged as much as 9% after tech giant Google announced a new Google Search feature designed to help people practice — and improve — their English speaking skills.

While Google made it clear that its goal wasn’t to compete with dedicated language learning apps like Duolingo, Memrise, or Babbel, this new future does compete with Duolingo and other similar apps.

Competing with a tech giant like Google might seem daunting, but Duolingo’s yesterday selloff seems to be an overreaction. Google's new language learning feature is unlikely to have a significant impact on DUOL’s growth, at least for the foreseeable future. Here’s why.

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