Gaotu's top-line growth still looks impressive, but its stock has lost over 90% of its value this year as Chinese regulators cracked down on the country's for-profit education companies. However, Gaotu's stock now trades at less than one times last year's sales.
Full Answer
Why did GAOTU techedu stock fall 9% on Friday?
Shares of Chinese online after-school tutoring stock Gaotu Techedu (NYSE:GOTU), which changed its name from "GSX Techedu" last week, closed down 9% on Friday after investment bank Citigroup downgraded the stock all the way from buy to sell.
Where can I buy shares of gotu?
Shares of GOTU can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Compare Top Brokerages Here.
Is techedu’s stock falling?
The GSX Techedu Inc. stock price fell by -8.53% on the last day (Friday, 11th Mar 2022) from $1.70 to $1.56. and has now fallen 3 days in a row. During the day the stock fluctuated 18.00% from a day low at $1.50 to a day high of $1.77.
What if I purchased GAOTU securities during the class period?
SO WHAT: If you purchased Gaotu securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a c
Why is Gotu stock falling?
Gaotu's top-line growth still looks impressive, but its stock has lost over 90% of its value this year as Chinese regulators cracked down on the country's for-profit education companies.
Will Gotu stock go up?
Gaotu Techedu Inc (NYSE:GOTU) The 2 analysts offering 12-month price forecasts for Gaotu Techedu Inc have a median target of 1.60, with a high estimate of 1.97 and a low estimate of 1.22.
Can Gotu stock recover?
On average, Wall Street analysts predict that GAOTU TECHEDU's share price could reach $6.03 by Jul 26, 2022. The average GAOTU TECHEDU stock price prediction forecasts a potential upside of 371.33% from the current GOTU share price of $1.28.
Should I invest Gaotu Techedu?
There are currently 3 sell ratings and 1 hold rating for the stock. The consensus among Wall Street analysts is that investors should "sell" Gaotu Techedu stock.
Who is buying Gotu stock?
Top 10 Owners of Gaotu Techedu IncStockholderStakeShares bought / soldCredit Suisse International (Inve...1.55%+120,917Krane Funds Advisors LLC1.48%+677,487BlackRock Fund Advisors1.38%-2,633HSBC Global Asset Management (UK)...1.23%-9,7446 more rows
Is Alibaba going to be delisted?
According to the HFCAA, there will be "an initial trading prohibition on a registrant as soon as practicable after it is conclusively identified as a Commission-Identified Issuer for three consecutive years." Alibaba's shares fell by -8% from $100.93 as of March 9, 2022 to $92.92 as of March 10, 2022.
Will NIO recover?
Nio is a speculative tech stock and doesn't expect to generate a profit until 2024. The price-to-earnings multiple based on earnings per share for 2024 is still considered quite high, more than 60 times.
Should I buy or sell Gaotu Techedu stock right now?
4 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Gaotu Techedu in the last year. There are currently 3 sell rating...
What is Gaotu Techedu's stock price forecast for 2022?
4 brokerages have issued 12-month price objectives for Gaotu Techedu's shares. Their GOTU stock forecasts range from $2.50 to $3.50. On average, th...
How has Gaotu Techedu's stock performed in 2022?
Gaotu Techedu's stock was trading at $1.94 on January 1st, 2022. Since then, GOTU shares have decreased by 7.7% and is now trading at $1.79. View...
Are investors shorting Gaotu Techedu?
Gaotu Techedu saw a increase in short interest in the month of May. As of May 31st, there was short interest totaling 11,990,000 shares, an increas...
When is Gaotu Techedu's next earnings date?
Gaotu Techedu is scheduled to release its next quarterly earnings announcement on Wednesday, September 28th 2022. View our earnings forecast for G...
What guidance has Gaotu Techedu issued on next quarter's earnings?
Gaotu Techedu issued an update on its second quarter 2022 earnings guidance on Monday, June, 13th. The company provided EPS guidance of for the per...
Who are Gaotu Techedu's key executives?
Gaotu Techedu's management team includes the following people: Mr. Xiangdong Chen , Founder, Chairman & CEO (Age 50) Ms. Nan Shen , Chief Finan...
Who are some of Gaotu Techedu's key competitors?
Some companies that are related to Gaotu Techedu include Udemy (UDMY) , Strategic Education (STRA) , Stride (LRN) , Adtalem Global Education (A...
What is Gaotu Techedu's stock symbol?
Gaotu Techedu trades on the New York Stock Exchange (NYSE) under the ticker symbol "GOTU."
Signals & Forecast
The GSX Techedu Inc. stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.
Support, Risk & Stop-loss
On the downside, the stock finds support just below today's level from accumulated volume at $1.89 and $1.65. There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, GSX Techedu Inc. finds support just below today's level at $1.89.
Is GSX Techedu Inc. stock A Buy?
GSX Techedu Inc. holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.
Golden Star Signal
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Top Fintech Company
featured in The Global Fintech Index 2020 as the top Fintech company of the country.
What is Gaotu Techedu?
Gaotu Techedu Inc. ("Gaotu" or the "Company") (NYSE: GOTU), a leading online K-12 large-class after-school tutoring service provider in China, today announced that it has changed its name from "GSX Techedu Inc." to "Gaotu Techedu Inc.," effective June 4, 2021. The American depositary shares of the Company, every three representing two Class A ordinary shares, par value US$0.0001 per share, will begin trading under the new corporate name on June 7, 2021.
When will GSX report financial results?
(NYSE: GOTU) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today announced that it will report its financial results for the first quarter ended March 31, 2021, before U.S. markets open on May 26, 2021.
Is there a class action lawsuit against Gaotu Techedu?
New York, New York-- (Newsfile Corp. - November 22, 2021) - Jakubowitz Law announces that a securities fraud class action lawsuit has commenced on behalf of shareholders of Gaotu Techedu Inc..CLICK HERE FOR MORE DETAILS:https://claimyourloss.com/securities/gaotu-techedu-inc-loss-submission-form/This lawsuit is on behalf of persons and entities that purchased or otherwise acquired shares of Gaotu Techedu Inc. ("Gaotu ") (NYSE: GOTU) between March 22, 2021 and March 29, 2021. Shareholders intereste
Why is China clamping down on education stocks?
The government’s clampdown on education stocks comes as China looks to boost its long-term economic growth through encouraging its citizens to have more children. One key obstacle many have identified to having children is the increasing cost of tutoring and education services from for-profit businesses.
What education stocks have lost 50%?
Various education stocks including TAL Education (NYSE: TAL ), Gaotu Techedu (NYSE: GOTU) and New Oriental Education & Tech (NYSE: EDU) have all lost more than 50% of their value today. Indeed, given such a steep decline, investors can be assured something is awry.
Why is China clamping down on companies?
From the cancellations of initial public offerings (IPOs) to massive fines handed down via an anti-monopoly crackdown, the Chinese government has shown its eagerness to clamp down on big companies. The reasons for these clampdowns are uncertain. Some suggest these moves are intended to preserve power. Others believe that private sector CEOs have now grown to a size that has become threatening to the Chinese government. Whatever the case, investors don’t seem to want to stick around to see what the government will hand down next.
Does Chris MacDonald have any positions in the securities mentioned in this article?
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Is Chinese stock a risky investment?
That said, Chinese stocks remain risky bets today. On the one hand, these are companies generally displaying incredible growth. Fundamentals are solid. However, the level of risk has become elevated for these stocks as of now.
Citi spins on a dime and downgrades to sell
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Shares of Chinese online after-school tutoring stock Gaotu Techedu ( NYSE:GOTU), which changed its name from "GSX Techedu" last week, closed down 9% on Friday after investment bank Citigroup downgraded the stock all the way from buy to sell.
So what
According to Citi, Chinese news site Xinhua Net quoted Chinese President Xi Jinping commenting that "students should not rely for their studies on after-school tutoring."
Now what
The next steps, warns Citi in a note covered today on TheFly.com, could be for Chinese regulators to impose controls on "excessive capitalization," put caps on pricing, ban advertising of tutoring services, and perhaps even restrict tutoring sessions to weekends and holidays.
In China it's easy come, easy go -- but mostly easy go
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
After rebounding strongly in Tuesday-morning trading, shares of Chinese education stocks have taken a U-turn today.
So what
Why is this happening? By now you know the overarching story of China's crackdown on for-profit education companies, right? Well, after Chinese regulators passed one -- hopefully -- final law on data privacy Monday, speculators began speculating that this might be the end of China's raft of regulations on the tech sector and perhaps the for-profit education sector as well..
Now what
Unfortunately, last night Bloomberg published a piece warning that yesterday's rally was only a "technical rebound."
