TEDU - Chinese online education stocks reel on inauspicious earnings result

17 Education & Technology (NASDAQ:YQ) tumbled on Friday after a report of flagging revenue. For the first quarter, 17 Education & Technology (YQ -17.7%) reported a net loss of $3.9M alongside a nearly 50% fall in revenue from the prior year to $36.82M. While margin improved slightly, the loss in revenue was clearly the sticking point for the market reaction on Friday. “During the quarter, we continue to see new demands and opportunities arising out of this new wave of COVID-19 outbreaks in China in early 2022,” CEO Andy Chang Liu said, attempting to encourage some optimism. “A number of local governments have released policies to support the procurement of quality education resources, including courses, systems and services for compulsory education.” However, as the Chinese government appears poised to lessen pandemic restrictions, this tailwind may be illusory. Tarena International (TEDU -5.4%), which is dealing with delisting fears, fell in sympathy

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Chinese online education stocks reel on inauspicious earnings result