Duolingo surges as AI-led growth, forecast raise boost investor confidence

Woman with her smartphone poses in front of displayed Duolingo logo in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration

(Reuters) -Duolingo shares surged about 32% on Thursday, after the company's annual forecast increase buoyed investor confidence in its ability to drive user growth through AI features and social engagement, while enhancing monetization.

The company is maintaining user growth by experimenting with app features, using social engagement strategies and optimizing its subscription offerings to retain users and attract new ones.