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Duolingo (NASDAQ:DUOL<\/a>), the world\u2019s largest language-learning solutions provider, is proving to be one of the most popular US stocks on the Trading 212 investment platform. Since 18 October, there\u2019s been a 61% increase in the number of investors holding the stock in their accounts.<\/p>\n And yet it could be one of the biggest losers from the artificial intelligence (AI) revolution. According to research undertaken by Microsoft, interpreters and translators are the most vulnerable. Apparently, there\u2019s a 98% overlap with AI and their roles. If fewer people are going to have a career as a linguist, it stands to reason that Duolingo\u2019s going to suffer. Or does it?<\/p>\n A double-edged sword<\/p>\n The company claims that 1.2bn people are currently learning a language. It says \u201cthe majority are doing so to gain access to better opportunities\u201d. This includes those looking to travel between countries \u2014 either on a permanent or a temporary basis \u2013 as well as some individuals who enjoy learning for its own sake.<\/p>\n Not surprisingly, the company\u2019s business model seeks to appeal to as many of these people as possible. It involves providing \u201cfree language education\u201d with \u201cno hidden fees [and] no premium content\u201d. However, the company isn\u2019t a charity. It has an obligation to its shareholders to be profitable. <\/p>\n One of the ways in which it achieves this is by selling advertising space and charging users to remove these adverts.<\/p>\n It also charges for its AI-based \u2018Duolingo Max\u2019 offering. As well as providing extra insights when users get things wrong, it offers a roleplay function where learners can interact with characters on the company\u2019s app. In addition, conversational skills can be practised via a video call feature with Lily.<\/p>\n The group\u2019s also using AI to cut costs, although it hasn\u2019t been easy. As if to prove Microsoft\u2019s prediction right, earlier this year, Duolingo unveiled plans to cut headcount and become an \u201cAI-first company\u201d. But there was such an outcry that it had to temporarily close down its social media accounts.<\/p>\n The group\u2019s share price is now (18 November) trading at 67% below its 52-week high. However, the company\u2019s chief executive recently said: \u201cWe are one of the few\u2026 that has found a way to make profit off of AI.\u201d<\/p>\n This could explain why so many Trading 212 users are keen on the stock.<\/p>\n Some numbers<\/p>\n During the third quarter of 2025, the group disclosed that it had 11.5m paid subscribers out of a total of 135.3m monthly active users. With only 8.5% of its customers prepared to pay for its services, there\u2019s plenty of scope to generate more revenue. And like most software businesses, it\u2019s able to command a healthy gross profit margin<\/a>. It was 72.5% during the quarter.<\/p>\n