COUR - Coursera stock price forms golden cross as active users jump

2023-07-29 07:17:23 ET

Coursera (NASDAQ: COUR) stock price made a strong comeback after the company published strong financial results. The shares surged to a high of $15.25, the highest level since February 15. The stock has jumped by more than 54% from the lowest level this year.

Coursera strong earnings

Coursera is one of the biggest educational technology companies in the world. It provides a marketplace where people create courses and training and then sell them to individuals and corporate clients. Together with companies like Udemy, Coursera’s business boomed during the pandemic as more people stayed at home.

Coursera published strong financial results this week,a sign that its business was bouncing back. Its revenue came in at $153 million, which was a 23% growth rate from the same quarter in 2022. This growth was driven by both corporate and individual customers.

Consumer revenue rose by 53% to $87 million while enterprise rose by 24% to $45 million. The gross profit of the two divisions rose to $45 million and $38.7 million, respectively. This happened as the number of new customers in the ecosystem jumped by more than 5.7 million. It now has 129 million users.

Its degree revenue rose by 10% to $12.5 million. Further, the company boosted its forward guidance. It now expects that its revenue will be between $156 million and $160 million in the third quarter with its EBITDA staying between $9 million and $14 million. It sees its revenue this year growing by 18%.

I believe that Coursera stock price bottomed earlier this year and that it will benefit as the demand of its business booms. In a note, analysts at Cantor noted that these metrics were fairly conservative. Also, they believe that its business model has proven that it can thrive in a challenging business environment.

Coursera stock price forecast

The daily chart shows that the Coursera share price has done well in the past few days. It made a gap-up after the company published its financial results on Friday. At the same time, a golden cross – when the 50-day and 200-day moving averages cross – is about to form. It is one of the most popular bullish signs in the market.

Therefore, the outlook for Coursera stock is bullish, with the next level to watch being at $16.67, the highest point on February 1st. A break above that resistance will see it rise to the next resistance point at $20.

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