GOTU - Gaotu Techedu: Revenue Guidance And Actual Operating Loss Missed Expectations

2024-05-23 09:06:17 ET

Summary

• Gaotu Techedu's actual first-quarter operating loss and Q2 revenue guidance were worse than what the market had expected.
• But the negatives are reflected in GOTU's current valuations, as the company's share price has corrected significantly following its Q1 results announcement.
• A Hold rating for Gaotu Techedu is fair, taking into account its performance, outlook, and valuations.

Elevator Pitch

I have a Hold rating for Gaotu Techedu Inc. ( GOTU ) shares.

Earlier, I wrote about Gaotu Techedu's new live-streaming e-commerce business and the company's financial prospects in my February 9, 2024 article . This latest update evaluates GOTU's recent quarterly financial performance and its outlook....

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