Duolingo stock has crawled back in the past few months, moving to its highest point since January this year. DUOL soared to $162, up by 77% from its lowest level this year. There is a risk that the stock may be on the verge of a reversal.

Duolingo is in a transition from growth to value

Duolingo, the popular online learning platform, is facing some major challenges as its business model is disrupted by artificial intelligence (AI) tools. 

As a result, the management has decided to focus on its user growth, with the goal of boosting its active users from 58.7 million today to 100 million in the coming years. 

To do that, the company is adding more services like chess and maths, and boosting its marketing spending. These activities have had an impact on its margins, with its net profit margin falling to 11.8% from the previous 17.8%.

The most recent results showed that Duolingo’s paid subscribers rose by 17% YoY to 12.7 million, while its revenue jumped by 18% to $298 million. Its results also showed that its net income falling by 26% to over $33 million. 

The management and analysts expect the company’s growth to continue in the coming quarters. For example, analysts expect the upcoming earnings to show that its revenue rose by 11.45% in Q3 to $302 million. For the year, analysts expect the revenue to jump by 16% to $1.22 billion, followed by 13% next year. 

These numbers imply that the company is in a transition from growth to value, meaning that its valuation multiples will need to be adjusted. Indeed, the forward price-to-earnings ratio has dropped to 22, much lower than its historical level. This multiple is in line with that of the S&P 500 Index.

Some analysts believe that Duolingo stock has more upside to go. For example, Evercore analysts believe that the shares will jump to $210, up by about 35% from the current level. However, many analysts have a mild outlook for the shares, with JPMorgan’s Bryan Smilek boosting his target from $125 to $135, down from where it is today. 

Duolingo stock faces a technical risk

DUOL stock chart | Source: TradingView

The risk, however, is that the DUOL stock is facing some technical risks. One of them is that it is forming a rising broadening wedge pattern, a common bearish reversal sign in technical analysis. This pattern is made up of two ascending and diverging trendlines. 

The two lines of the Percentage Price Oscillator (PPO) have jumped in the past few months. Also, the stock remains above the 100-day Exponential Moving Average (EMA). 

While these are bullish signs, the rising broadening wedge and the forming abandoned baby candle points to a reversal, potentially to the key support of $134. A move above the upper side of the wedge will point to more gains.

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Micron Technology MU stock fell 3% on Tuesday as concerns over a potential strike by its Taiwan-based workforce added pressure to the memory-chip maker’s shares.

Labor unions representing Micron employees in Taoyuan and Taichung said they were moving toward possible strike action unless the company overhauls its bonus system and increases profit-sharing with employees.

The unions told Reuters that they have nearly 10,000 members among Micron’s roughly 15,000 employees in the two cities.

More than 80% of participating union members backed strike action in an internal online survey conducted in August, according to the unions.

The labor dispute comes as Micron faces strong demand for memory chips used in artificial intelligence hardware and as Taiwan remains a critical manufacturing base for the company.

Taiwan unions push for profit-linked bonuses

The unions are seeking changes to Micron’s Incentive Pay Plan, arguing that the existing system does not adequately reflect the company’s profitability.

For fiscal 2026, the unions are seeking an additional one-off bonus payment that they estimate would amount to about 83 months of salary for each Taiwan-based employee.

From fiscal 2027, the unions want Micron to replace the existing system with one that allocates 15% of operating profit to employee bonuses. They are also seeking quarterly rather than annual bonus payments.

Micron’s current Incentive Pay Plan calculates annual bonuses using company and individual performance measures.

The unions have questioned how the company-performance component is calculated, arguing that it appears to track revenue growth more closely than profitability.

Micron said its compensation structure differs from the profit-sharing model proposed by the unions.

The company said employee compensation includes base salary, annual performance incentives, operational bonuses and equity programs such as stock-purchase and restricted-stock plans.

Micron’s Taiwan office also said this year’s performance-bonus payout would be the highest in the company’s history and that it would continue engaging with employees through existing channels while respecting applicable legal processes.

Potential strike could disrupt key operations

Taiwan is Micron’s largest manufacturing base, according to authorities in Taipei. The company has invested NT$1.4 trillion, or about $43.9 billion, on the island and produces DRAM and high-bandwidth memory chips there.

The Central Taiwan Science Park administration said it was monitoring the dispute and had assigned staff to facilitate communication between Micron and the unions.

It also said a strike could affect workers, Micron’s operations and potentially Taiwan’s semiconductor supply chain and wider economy.

The dispute comes as global demand for memory chips used in AI hardware has tightened supply and supported strong sector profits.

Micron reported record fiscal third-quarter revenue of $41.46 billion and net income of $28.24 billion for the quarter ended May 28.

Micron dispute follows wider chip labor tensions

Micron’s labor dispute echoes developments at other major Asian semiconductor manufacturers.

At Samsung Electronics in South Korea, a planned strike involving as many as 48,000 union members was called off in May following last-minute negotiations.

That agreement established a special bonus pool worth 10.5% of the chip division’s operating profit, subject to profitability targets.

Micron’s Taiwan unions said profit-sharing arrangements at Samsung and SK Hynix had widened the gap between Micron employees and their South Korean counterparts.

The dispute also comes as Taiwan seeks to reinforce its position as a reliable global semiconductor production hub.

Taiwan President Lai Ching-te said the island’s semiconductor industry had been built through specialization and long-term cooperation and that Taiwan had consistently supplied global markets and honored its commitments.

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US-Iran tensions intensified as Washington launched fresh strikes against Iranian targets, raising concerns about renewed disruptions to oil flows through the Strait of Hormuz.

Apple stock rose as John Ternus formally took over as chief executive, beginning the company’s first CEO transition since 2011.

Gold prices fell to a two-week low as higher Treasury yields and a stronger dollar pressured bullion. Oil prices jumped about 4% as renewed fighting revived fears of supply disruptions from the Middle East.

US launches new Iran strikes

The US launched a fresh wave of strikes against targets in Iran on Tuesday, marking a renewed escalation in the conflict after weeks of relative calm.

US Central Command said the strikes targeted Islamic Revolutionary Guard Corps positions following attacks on commercial shipping in the Strait of Hormuz and US forces in the region.

The latest attacks followed reports that two oil supertankers attempting to leave the Strait of Hormuz had been hit by projectiles.

The incidents came after the US said it had targeted Iranian rocket launchers preparing to place mines in the strait, while Iran retaliated with attacks on the United Arab Emirates and Jordan.

The renewed fighting has raised concerns over energy supplies because Hormuz is a major global oil shipping route.

Oil shipments had recovered to about half of pre-war levels during the period of reduced hostilities.

A prolonged return to fighting could increase energy costs and inflation pressures while adding uncertainty for global investors.

Apple stock rises as John Ternus takes charge

Apple stock rose about 3% on Tuesday after John Ternus formally became the company’s chief executive, succeeding Tim Cook.

Ternus is a 25-year Apple veteran who previously led hardware engineering teams responsible for products including the iPhone, Mac and iPad. His appointment marks Apple’s first CEO transition since 2011.

Cook, who succeeded co-founder Steve Jobs in August 2011, is moving into the role of executive chairman.

During his tenure, Apple expanded from a business valued at roughly $350 billion to one worth more than $4.5 trillion.

Investors appeared to view the leadership change as an orderly transition.

Ternus now faces the challenge of navigating competition in artificial intelligence while maintaining Apple’s product momentum and supporting future hardware growth.

Gold price falls below key technical level

Gold prices dropped more than 2% on Tuesday, reaching a two-week low as higher Treasury yields and a stronger US dollar weighed on bullion.

Spot gold fell 2.7% to $4,326.99 an ounce, after touching $4,362.89 earlier in the session. US gold futures declined 2.34% to settle at $4,376.50.

Gold’s move below its 200-day moving average, currently around $4,528, added to technical selling pressure.

Treasury yields also climbed to their highest level since January 2025 as renewed Middle East tensions increased inflation concerns.

Higher interest rates and Treasury yields typically weigh on gold by increasing the opportunity cost of holding the non-yielding asset.

A stronger dollar also makes gold more expensive for buyers using other currencies.

Markets are now focused on upcoming US employment data, including the ADP report and nonfarm payrolls, for clues about the Federal Reserve’s policy outlook.

Oil prices jump as Middle East tensions escalate

Oil prices climbed about 5% on Tuesday as renewed US-Iran fighting increased concerns over potential disruptions to crude supplies from the Middle East.

Brent futures rose 5.11%, to $95.10 a barrel, while West Texas Intermediate crude gained 5.62%, to $90.54. Both benchmarks were on track for their strongest closes in several weeks.

The renewed attacks came after the first direct exchange of strikes between the US and Iran since July and reports of tanker attacks near the Strait of Hormuz.

Iran has warned that it could prevent oil exports from the Gulf, increasing uncertainty around global energy flows.

The market is also dealing with broader refining disruptions.

Diesel prices in the US reached a 52-month high on Tuesday after rising about 51% over the previous 10 weeks. The diesel crack spread, which measures refining margins, climbed to a record high near $106 a barrel.

Investors are also awaiting weekly US oil inventory data. Analysts expect energy companies to have withdrawn about 0.8 million barrels of crude from storage in the week ended August 28, which would mark the first decline in five weeks.

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US stocks fell on Tuesday as investors began September amid rising oil prices, higher global bond yields and renewed concerns over inflation.

The Dow Jones Industrial Average declined 0.79%, while the S&P 500 and Nasdaq Composite also closed lower as markets assessed the potential impact of renewed US-Iran hostilities on energy prices and Federal Reserve policy.

Stocks fall as oil prices fuel inflation concerns

The Dow shed 419.02 points, or 0.79%, to end at 52,766.88. The S&P 500 declined 0.71% to 7,631.47, while the Nasdaq Composite fell 1.03% to 26,099.77.

Oil prices rose sharply after the US launched fresh strikes against Islamic Revolutionary Guard Corps targets in Iran.

US West Texas Intermediate crude gained 5.2% to settle at $90.22 a barrel, while Brent futures rose 4.6% to close at $94.65.

The latest increase extended oil’s advance after military action between the US and Iran resumed. A tanker traveling through the Strait of Hormuz was also hit by three unknown projectiles on Monday.

The escalation has increased concerns that disruptions to energy supplies could persist, adding to inflation pressures and creating further uncertainty for financial markets.

Energy was the strongest-performing sector among the 11 major S&P 500 sectors, supported by higher crude prices.

The Dow Jones Transportation Average was among the biggest laggards, while all constituents of the Philadelphia Semiconductor Index ended lower.

Global bond yields climb as Fed hike bets rise

Bond yields continued to move higher across major economies, adding pressure to equities.

The US 10-year Treasury yield reached levels not seen since January 2025, while Japan’s 10-year yield climbed to its highest level since August 1996. Germany’s benchmark yield also reached a high not seen since 2011.

Markets have been concerned that elevated oil prices could keep inflation higher and influence central bank decisions.

The Federal Reserve is scheduled to meet later this month, with investors increasingly pricing in the possibility of a rate hike.

CME’s FedWatch tool showed a roughly 68% probability of a 25-basis-point rate increase at the September meeting, up from 39.6% a week earlier.

Recent economic data has provided mixed signals.

The Labor Department’s JOLTS report showed slower labor-market churn, while manufacturing activity has weakened and residential construction spending has declined.

The data also pointed to continued price pressures and uncertainty linked to tariffs and geopolitical tensions.

September begins with seasonal and geopolitical risks

The market’s decline also comes as investors enter a month that has historically been challenging for equities.

September has recorded the weakest average stock-market performance of any month since 1926, according to data cited by Fisher Investments.

Renewed US-Iran fighting has added another source of uncertainty.

The US launched new airstrikes around the Strait of Hormuz, while Iran warned that it could prevent oil exports from the Gulf. The US has also indicated that additional sanctions against Iran could be announced.

Investors are now awaiting the August nonfarm payrolls report due Friday, alongside other economic indicators, for clues about the Federal Reserve’s next move.

With oil prices rising and bond yields climbing, markets remain sensitive to any evidence that inflation could stay elevated.

The combination of geopolitical risks, tighter financial conditions and uncertainty over monetary policy weighed on stocks as the new month began.

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Robinhood Markets HOOD shares rose in premarket trading on Tuesday after Morgan Stanley upgraded the online trading platform to Overweight from Equal-weight and raised its price target to $150 from $124.

The upgrade came even as broader cryptocurrency-related stocks declined, with Coinbase and Strategy trading lower in premarket activity.

Morgan Stanley said Robinhood’s expanding product lineup, stronger customer engagement and growing asset-based revenues could support further growth.

The bank also raised its earnings estimates for the company through 2028.

Morgan Stanley raises Robinhood price target

Robinhood shares gained about 1.4% in premarket trading, while the stock remained down about 7% since the start of the year.

Morgan Stanley’s new $150 price target represents roughly 43% upside from Monday’s closing price. FactSet data showed an average analyst target of nearly $126.

Analysts led by Michael Cyprys said Robinhood’s broader product capabilities are improving the economics of its existing customer base.

“We see increasing evidence that broader product capabilities are improving the economics of HOOD’s installed customer base,” Cyprys wrote.

The bank raised its earnings-per-share estimates for the next three years by 12%, 14% and 15%, respectively.

Morgan Stanley highlighted Robinhood’s ability to generate more revenue from its existing customer base rather than relying primarily on growth in funded accounts.

The company now has 13 business lines generating more than $100 million in annualized revenue, according to the bank.

Prediction markets boost engagement

Prediction markets were identified as a major growth opportunity for Robinhood.

Event contract revenue increased to $156 million in the second quarter from $10 million a year earlier, surpassing revenue generated from equities and cryptocurrency trading.

Morgan Stanley said fewer than 2 million prediction-market users generated the $156 million in second-quarter revenue, highlighting the potential for further customer engagement.

The bank also pointed to Robinhood’s expanding range of products, including retirement accounts, credit cards, advisory services, banking, gold and trust offerings. These products could encourage customers to hold more assets on the platform.

Higher trading activity is another factor supporting the upgrade. Robinhood has introduced features including short selling, futures and desktop trading, which Morgan Stanley said have helped active traders use the platform more frequently.

The analysts noted that the company’s assets per customer had increased 23% year over year, while Gold users held about 4.2 times the average customer’s assets under custody.

Infrastructure offers another growth avenue

Morgan Stanley also sees greater monetization opportunities as Robinhood expands further into market infrastructure.

The company has begun routing prediction-market event contracts through its affiliate exchange, Rothera, giving it more control over the related value chain.

“Notably, our revisions come despite lower crypto forecasts,” the analysts wrote, adding that the upside is increasingly driven by active trading, prediction markets and asset-based revenues.

Morgan Stanley expects Robinhood’s revenue to grow at a 23% compound annual growth rate through 2028, reaching $8 billion, about 6% above consensus estimates.

The bank also expects expense discipline to increase EBITDA margins to 53% from 48%.

Potential catalysts include the Sept. 29-30 HOOD Summit, Rothera, perpetual futures, and agentic trading.

The bank’s $150 target is based on a 25-times multiple of its 2031 probability-weighted earnings.

With Morgan Stanley’s new target implying 43% upside, HOOD is likely to stay on the radar of investors evaluating online trading platforms.

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KuCoin, a global cryptocurrency platform, has upgraded its Institutional Interest-Free Lending Program by adding support for its Unified Trading Account (UTA).

The update lowers the external 30-day trading volume requirement for newly registered API clients from 30 million USDT to 10 million USDT.

Eligible clients can also access 0% interest for the first two months without a trading volume requirement and borrow up to 3 million USDT for use across Spot, Margin and Futures.

According to KuCoin, the update is intended to reduce the costs and operational complexity that can arise when institutional capital is spread across multiple accounts and trading products.

Integrating lending with a unified account allows eligible users to access financing and deploy capital through the same account structure.

UTA allows eligible users to manage capital across supported trading products through a single account.

With Institutional Lending integrated into UTA, borrowed funds can be used across Spot, Margin and Futures without transfers between separate trading accounts. Borrowing is available in USDT, USDC, BTC and ETH.

KuCoin introduced its interest-free credit program in 2024, offering eligible API traders and quantitative teams up to 500,000 USDT, along with fee benefits, higher API limits, enhanced connectivity and technical support.

In 2025, the borrowing limit increased to 3 million USDT, while the program added support for multiple borrowing assets and allowed users to combine funds from sub-accounts as margin across eligible products.

“Professional market participants need timely, flexible and capital-efficient access to liquidity. Effective institutional lending infrastructure must combine financing at scale, tailored terms and competitive pricing so clients can execute sophisticated strategies with confidence,” said Alison Qin, Head of KuCoin Institutional & VIP.

KuCoin said the 2026 upgrade moves the program toward a more integrated institutional capital infrastructure by connecting lending directly with its unified account framework.

KuCoin said the upgrade is part of its broader product strategy focused on how users access, manage and deploy digital assets.

The company added that connecting financing, account infrastructure and execution is intended to provide institutions with tools for participating in the digital asset market.

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Nio stock continued its strong downward trend, reaching its lowest level since July 2025 after the company announced its financial results, which showed that its losses continued last quarter. It dropped to a low of $4.20, down by over 40% from its highest point this year. 

Nio’s losses continued despite the revenue boom

Nio, a top Chinese company, published a mixed financial result. Its revenue soared by 69% in the second quarter to $4.7 billion. It had grown by over 27.5% from a quarter earlier, with its volume continuing to surge amid the rising demand for its vehicles. 

The results also showed that its gross margins rose to 18.4%, higher than the 10.3% in the same period last year. This metric, however, was lower than the 19% from the previous quarter.

Most notably, the company’s bottom line remained in the red, with its net loss jumped to $77.8 million. This figure has been getting worse after it made a big profit in the fourth quarter of last year. The CEO said:

“The Company continued to improve its overall operating quality. Supported by strong sales of higher-margin models and ongoing optimization of our cost structure, we maintained healthy gross and vehicle margins despite rising cost pressures.”

Nio’s performance after earnings mirrors that of other companies. For example, BYD stock dropped to $11, its lowest level since July 23rd, even after it reported a strong profit. Xpeng stock dropped to $11.36, down by 60% from its highest point last year.

Li Auto shares plunged to $12.10, down by 30% this year, while Polestar is down by over 40%. Other Chinese EV companies like Xiaomi and Zeekr have all dropped substantially this year.

BYD highlighted some of the challenges that the company is facing. In its earnings last week, BYD noted that the industry was contending with higher costs and sluggish demand. As a result, the management is expanding its business globally to offset the weak Chinese demand.

On the positive side, Nio believes that its growth will continue in the foreseeable future. Its deliveries in the third quarter is expected to be between 108,000 and 111,000, with its revenue growing by over 50% YoY.

Nio stock price technical analysis

Nio stock chart | Source: TradingView

The daily chart shows that the Nio shares have continued to fall in the past few months. It dropped below the important support level of $4.40, its lowest level in February and March this year.

Moving below that level confirmed the bearish outlook. At the same time, the stock has formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis.

The stock has moved below all moving averages and the Supertrend indicator. Also, the Relative Strength Index (RSI) has continued falling, reaching a low of 34, its lowest level since July 14. 

Therefore, the stock will likely continue falling, potentially to the key support level of $3.50. On the other hand, the stock has also formed a falling wedge pattern, a sign that it may rebound in the coming weeks.

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US stocks opened lower on Tuesday, the first trading day of September, as rising Treasury yields, higher oil prices and renewed Middle East tensions pressured investor sentiment.

Traders also increased their expectations for a Federal Reserve rate hike later this month, adding to concerns over the outlook for equities.

The Dow Jones Industrial Average was down 254 points while the S&P 500 fell 0.65%. The Nasdaq Composite declined 1.32%.

The weakness followed a difficult end to August for stocks and came as investors entered September, historically the weakest month for the S&P 500.

Since 1926, the benchmark index has recorded an average September decline of 0.7%, according to data cited by Fisher Investments.

Rising yields and oil pressure stocks

Higher bond yields remained a key source of pressure for equities.

The US 10-year Treasury yield climbed to levels not seen since January 2025, while benchmark yields in other major markets also moved higher.

Japan’s 10-year government bond yield reached its highest level since August 1996, while Germany’s benchmark yield climbed to a level last seen in 2011.

The rise in global yields has been driven partly by concerns that elevated oil prices could keep inflation pressures high.

Higher Treasury yields can also reduce the relative appeal of equities by increasing returns available from risk-free government debt.

Oil prices extended their gains on Tuesday. US crude rose more than 2% to trade above $87 a barrel, while Brent futures gained more than 1% to around $92.

The increase followed renewed military activity between the US and Iran.

Concerns over potential disruptions to energy supplies have pushed crude prices higher, with a tanker traveling through the Strait of Hormuz reportedly struck by three unknown projectiles on Monday.

The energy sector benefited from the move in crude prices. Exxon Mobil gained 1.49%, and Devon Energy advanced 1.44%.

Investors await jobs data and Fed signals

Investors are also preparing for a series of labor-market reports that could influence expectations for Federal Reserve policy.

The Labor Department’s Job Openings and Labor Turnover Survey is due later Tuesday, while the more closely watched nonfarm payrolls report is scheduled for Friday.

The data will be assessed against the backdrop of recent comments from Fed Chair Kevin Warsh, who has emphasized inflation as a key policy concern.

A stronger-than-expected inflation outlook could reinforce expectations for tighter monetary policy, while labor-market weakness could influence the timing of future policy changes.

Technology stocks were among the biggest decliners.

Nvidia, Intel and AMD fell between 2% and 3.22%, while Micron Technology and Microsoft also moved lower. Alphabet declined 1.22%.

Robinhood bucked the broader trend, rising 1.77% after Morgan Stanley upgraded the stock.

Energy stocks advanced alongside crude prices.

Overseas markets were mixed. Japan’s Nikkei 225, Australia’s S&P/ASX 200 and China’s CSI 300 declined, while South Korea’s Kospi gained.

European stocks were broadly lower, with the Stoxx 600 down 0.6% in mid-morning trading. Oil and gas stocks were an exception, rising 1.3% as crude prices climbed.

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