DAO - Youdao: Expecting A Better Year Ahead

2024-03-12 02:07:32 ET

Summary

• Youdao's revenue growth is expected to accelerate this year with the expansion of the online marketing services business in the gaming sector and overseas markets, and the conclusion of the smart devices business' channel optimization exercise.
• Net loss for DAO is likely to narrow in a meaningful way for 2024, as there are opportunities for profitability improvement with its smart devices business and its learning services business.
• The stock is attractively valued, and the company's financial prospects are healthy, which warrants a Buy rating for Youdao.

Elevator Pitch

I have a Buy rating for Youdao, Inc. ( DAO ) shares. My previous November 17, 2023 article touched on DAO's financial results for the third quarter of last year and the company's continued share buybacks....

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