- Gaotu's stock has suffered from a vertiginous fall just like other Chinese educational stocks, after a crackdown by the country's authorities.
- However, between strong rhetoric in a draft document and actual implementation in big China, there is likely to be a considerable time lag.
- Also, there are some reasons to think that the final regulations will not be as staunch as the draft proposal.
- Now, Gaotu remains a key online education enabler during COVID variant times, away from the infection-prone four walls of a classroom.
- Therefore, opting for a small position has started to make sense.
For further details see:
Gaotu Techedu: Long-Term Rationale Amid The Disarray