- 2U is a leading education technology company competing in the higher education market, which is primed for digital disruption.
- Higher education is as much about status as learning though, giving brand name institutions a strong bargaining position.
- The financial performance of technology partners like 2U will be dependent on the attractiveness of the contracts they can negotiate as the market becomes more competitive.
- Unless 2U can expand into adjacent verticals like financing, I believe they will struggle to achieve the margins necessary to drive the share price significantly higher.
For further details see:
2U: Weak Competitive Position Driving Losses