Duolingo’s shares experienced a significant increase of nearly 7% on Thursday, driven by a surge in users signing up to learn Mandarin. This growth aligns with the increasing usage of the Chinese social media app RedNote (Xiaohongshu), which has recently topped Apple’s app store. The trend is influenced by an exodus of American users from TikTok, following legal uncertainties surrounding the app’s future in the United States. The Supreme Court recently heard oral arguments in a case that could potentially lead to a ban on TikTok, and the app is reportedly preparing for a shutdown on Sunday.
The popular language-learning platform boasts 48.8 million Spanish learners, with French as the second most popular language at 27.3 million users. Over the last week, Duolingo has seen a 40% increase in Spanish learners, indicating a broader interest in language acquisition. This spike comes as Duolingo offers courses in 42 languages, available both online and through its mobile app.
RedNote’s Impact on Duolingo’s Growth
Meanwhile, RedNote has witnessed a remarkable 216% increase in Mandarin learners compared to a year earlier. The app’s U.S. downloads have surged by 20 times over the last week, according to Sensor Tower data. RedNote’s ascendancy in the app store can be attributed to the migration of users from TikTok, seeking alternative platforms amid ongoing legal battles.
Duolingo’s strategic marketing efforts play a crucial role in its growth. A Duolingo spokesperson highlighted the company’s proactive approach, describing it as “forward-thinking and already has an active presence on Red, managed by our team in China.” This strategic engagement with RedNote users has bolstered Duolingo’s position in the language-learning market.
Duolingo’s shares climbed by 43% last year, surpassing the Nasdaq’s 29% gain, a testament to its robust performance and market appeal. As users increasingly gravitate towards learning Mandarin, Duolingo continues to capitalize on its free app availability on the Apple app store, providing accessible language education to millions globally.
Author’s Opinion
Duolingo’s recent success story highlights its adaptability and strategic foresight in tapping into shifting market trends. The platform’s significant user increase for Mandarin learning amidst TikTok’s legal uncertainties showcases how external market forces can favorably impact product demand. Duolingo’s ability to integrate cultural trends and user behavior into its business model not only enhances its market position but also reinforces the importance of agility in today’s digital landscape. As it continues to expand its offerings and reach, Duolingo is well-positioned to remain a dominant player in the language education sector.
