- The current price represented the market’s over-reaction that has priced in fears of investors in addition to Youdao’s risk exposure in K12.
- The market underestimated DAO’s agility in revamping products or establishing new studios to comply with regulations.
- With resource redeployment, DAO may become a stronger leader in the Smart Learning Devices space.
- Youdao’s Financial results will improve in the long run given its strong pricing power with irreplaceable product offerings.
For further details see:
Youdao: A Forced Transformation May Establish A Stronger Market Leader