Duolingo Shares Surge as Americans Flock to Learn Mandarin Amid TikTok Uncertainty
Duolingo’s stock saw a significant boost on Thursday, climbing nearly 7%, as a wave of new users signed up to learn Mandarin. The surge comes amid growing interest in the Chinese language, driven largely by the rising popularity of RedNote, a TikTok rival that has become the top free app on Apple’s App Store in the U.S.
Why Are More Americans Learning Mandarin?
The surge in Mandarin learners on Duolingo coincides with a shift in social media trends. As U.S. lawmakers move closer to potentially banning TikTok, many American users are migrating to RedNote, also known as Xiaohongshu in China. The app, which blends social networking with e-commerce, has seen a 20-fold increase in U.S. downloads in just the past week, according to Sensor Tower.
As RedNote gains traction, many users are looking to better understand Mandarin, either for communication or business opportunities. Duolingo confirmed to CNBC that the number of people learning Mandarin on its platform has skyrocketed by 216% compared to last year—far outpacing the 40% growth seen in Spanish, one of the app’s most popular languages.
RedNote’s Meteoric Rise and the TikTok Ban Impact
RedNote’s rise has been fueled by increasing uncertainty over TikTok’s future in the U.S. Last week, the Supreme Court heard arguments regarding a proposed law that could effectively ban TikTok. The justices appeared to lean toward upholding the ban, with a final decision expected soon. If implemented, TikTok could be shut down in the U.S. as early as Sunday.
As TikTok faces potential restrictions, alternatives like RedNote are thriving. The app has not only topped Apple’s App Store charts but has also outperformed other emerging platforms like TikTok’s Lemon8, Clapper, OpenAI’s ChatGPT, and Meta’s Threads.
Duolingo’s Smart Move in the Chinese Market
Duolingo has been quick to capitalize on the trend. A spokesperson for the company revealed that its marketing team has already established a presence on RedNote, managed by their team in China. This strategic move could further boost engagement on the platform and position Duolingo as a go-to resource for Mandarin learners.
The company currently offers courses in 42 languages, with Spanish leading at 48.8 million learners. French ranks second with 27.3 million learners, while Mandarin is eighth with 10.7 million users. However, given the recent surge in demand, Mandarin could soon climb higher in popularity.
A Strong Year for Duolingo’s Stock
Duolingo’s strong performance in the stock market has been notable. In 2023, the company’s shares climbed 43%, surpassing the Nasdaq’s 29% gain. If the current trend of users seeking to learn Mandarin continues, Duolingo could see even greater growth in 2024.
With the potential TikTok ban looming, and RedNote emerging as a dominant player, the demand for Mandarin language skills among Americans is expected to rise further. Whether this trend is temporary or marks a long-term shift remains to be seen, but for now, Duolingo is reaping the benefits.
