GOTU - Gaotu Techedu: Live-Streaming Business And Financial Outlook Are Key Investment Considerations
2024-02-09 09:42:18 ET
Summary
- GOTU's live streaming e-commerce business saw a very significant increase in followers in the past few months, and this explains the company's recent stock price outperformance.
- But Gaotu Techedu is valued by the market at a demanding P/E multiple at the high-twenties level, and there are risks associated with the sell side's bullish FY 2024 outlook.
- I rate GOTU as a Hold after considering both the growth of Gaotu Techedu's live streaming business and the risk of negative earnings surprises for the company in FY 2024.
Elevator Pitch
Gaotu Techedu Inc. ( GOTU ) stock is awarded a Hold investment rating. My previous November 25, 2023 write-up was focused on GOTU's third quarter results review and the increase in Gaotu Techedu's share buyback authorization to $80 million....
Gaotu Techedu: Live-Streaming Business And Financial Outlook Are Key Investment Considerations