⚡️Duolingo just collided with the new regime. For years it traded on three assumptions: 1. Language learning demand compounds globally. 2. Monetization keeps improving as free users convert. 3. The product moat stays emotionally sticky and structurally differentiated. Now AI changes the structure of the game. Language learning is one of the first categories where AI removes friction almost completely. Real time conversation, instant correction, infinite practice, hyper personalized pacing. The core value proposition becomes easier to replicate. The barrier to entry drops. When the barrier drops, two things happen at the same time. Competition increases. Pricing power weakens. The market sees bookings softness and immediately revalues the future. High multiple growth stocks are priced on the slope of expectation. When slope flattens, price compresses faster than fundamentals deteriorate. Add a CFO departure and guidance that signals intentional growth tradeoffs and you get a trust reset.. The deeper structural issue is this. Duolingo’s moat has always been behavioral design and brand, not raw content. Gamification, streaks, push loops, habit formation. That still matters. But AI compresses differentiation at the core content layer. When content becomes commodity, retention mechanics have to carry more weight. Investors are now asking a harsher question....