Duolingo Is Flying
Thursday, August 7th, 2025
World News - A Glimpse of Gaza’s Miserable Future
Economists
Gaza’s outlook remains bleak, with the territory trapped in a web of dependency and devastation. Despite international pledges and partial increases in aid, the supply of food and essentials falls far short of need. Israel’s restrictions and a collapsed infrastructure mean that aid deliveries are often intercepted or make it only as far as the black market, where staple goods sell for prices most Gazans cannot afford. Children bear the brunt, with soaring rates of malnutrition, premature births, and preventable disease, conditions that could leave an entire generation permanently impaired. The challenges of reconstruction are daunting: Gaza faces decades of clearing rubble, restoring agriculture, and rebuilding shattered schools and hospitals—all with little local capacity and an economy gutted by war and blockade. Even if the fighting stops, Gaza will be at the mercy of outside powers to meet basic needs. With little hope for self-sufficiency and mounting pressures to emigrate, the territory’s future looks persistently miserable, its people enduring the consequences of a prolonged conflict and a world unable—or unwilling—to provide more than temporary relief.
Tech - Trump Planning Tariff on Chip Imports
Bloomberg
Donald Trump has announced a 100% tariff on imported semiconductors, but companies that move production to the US—like Apple—will be exempt. Apple and Trump revealed a $100 billion investment plan to ramp up Apple’s US manufacturing alongside long-standing partners like Corning and Texas Instruments. While details of the new tariffs and the exemption process are still pending, this move is a significant win for Apple, shielding its US-bound products from massive cost increases. However, many tech firms, heavily dependent on global supply chains and production in places like India and Vietnam, still face new tariffs, including a 50% levy on Indian-made goods and 20% on Vietnamese products. Despite these headline investment pledges, experts remain cautious about the actual impact, as much of the promised spending continues trends that predate the announcement, and Apple’s manufacturing shift remains incomplete, with the majority of devices still assembled overseas. The tariff policy signals an escalating effort to push tech manufacturing back to the US, but the practical challenges of reshoring complex supply chains persist.
Business - AirBnB Gives Cautious Guidance Despite Beat
Airbnb posted strong second-quarter 2025 results, with revenue up 13% year-over-year to $3.1 billion and net income rising 16% to $642 million—both exceeding analyst expectations—yet the company warned of more difficult months ahead as new Trump administration tariffs begin to impact countries like Switzerland and India and as it invests $200 million into new services such as app-based experiences and local service bookings. Despite recent growth in bookings and robust summer season forecasts, Airbnb’s executives expect profit margins to narrow in the near term and admitted that their new business lines are unlikely to generate meaningful revenue soon, reflecting continued economic uncertainty and operational challenges from shifting global trade policies.
Society - Shopify’s View On SMEs and Ecom
CNBC
Shopify shares soared 21% after the company delivered Q2 2025 results that handily beat expectations, with adjusted earnings per share of 35 cents (vs. 29 cents forecast) and revenue up 31% year-over-year to $2.68 billion, outpacing analyst predictions. The company reported strong guidance for the third quarter, forecasting revenue growth in the mid-to-high twenties percentage range—well above consensus estimates. Despite widespread concerns over the impact of President Trump’s new tariffs on global e-commerce, Shopify’s CFO stated that the expected tariff-related slowdown “did not materialize,” as neither consumer demand nor gross merchandise volume (which rose 29% to $87.8 billion) showed any signs of weakness. Executives highlighted robust performance among merchants of all sizes and continued heavy investment in artificial intelligence tools, which management credits for attracting more businesses to the platform. Operating expenses as a share of revenue are expected to tick lower, and Shopify’s cash flow margins remain strong, marking a decisive vote of confidence in its business resilience and future growth trajectory.
Culture - Duolingo Recovering From Reputational Damage
Bloomberg
Duolingo raised its full-year revenue outlook to $1.01–1.02 billion, surpassing analyst expectations, after strong second-quarter results driven by robust growth in paid subscriptions and new offerings beyond language learning, such as mathematics, chess, and, following its largest acquisition to date, music gaming through the purchase of NextBeat. Revenue for Q2 jumped 41% to $252.3 million and net income more than doubled to $44.8 million, as daily active users grew 40%, though the pace of new user growth has slowed compared to previous quarters. The expansion into non-language areas like music aims to accelerate growth and diversify engagement, though increased investment in generative AI and new products has modestly pressured gross margins. Duolingo’s stock surged post-earnings, reflecting investor confidence in its broadened “super app” strategy and ability to translate product innovation into strong financial performance.
The Daily Spark
Household formation could decline by 50% from 2024 to 2026 due to deportations and immigration restrictions, see chart below and the Daily Spark here.
A significant decline in household formations has important implications for consumer spending, housing demand and home prices.
Song Recommendation - Ever Seen
Quote of the Day
“It is by no means an irrational fancy that, in a future existence, we shall look upon what we think our present existence, as a dream.”
― Edgar Allan Poe