Duolingo (NASDAQ:DUOL) is down 77% over the last year while the S&P 500 is up 32% but 7investing founder Simon Erickson is defending the owl. In this deep dive into Duolingo's Q1 2026 earnings, Simon breaks down why the bearish narrative around slowing top-line growth and AI competition from OpenAI and Google (NASDAQ:GOOGL) may be missing the bigger picture: Duolingo is one of the most capital-efficient software businesses in the market, with a 37% return on invested capital, a cash ROIC of 99.4%, 50%+ free cash flow margins, and zero long-term debt.Simon also covers the optionality that most analysts are overlooking — Duolingo's math app, music lessons, chess, and the internationally recognized Duolingo English Test — and explains why CEO Luis Von Ahn's methodical, profitability-first approach makes this a compelling long-term hold even as short-term sentiment stays negative.Stocks Mentioned:Duolingo (NASDAQ:DUOL)Alphabet / Google (NASDAQ:GOOGL)OpenAI — private#Duolingo #DUOL #GrowthStocks #TechStocks #StockAnalysis #BuyTheDip #EarningsReport #AIStocks #SoftwareStocks #StocksToWatch #InvestingIn2026 #7investing #Simonerickson