Coursera’s stock has fallen to an almost record low, as its business is slowing down amid a surge in AI usage. COUR traded at $8.31 – just a few cents above its record low price of $6.26.
The growth momentum is easing
Coursera, Udemy, and Chegg and similar companies that offer edtech services are suffering as customers increasingly turn to artificial-intelligence tools for learning.
Udemy stock is down 76% since its peak this year. Chegg stock, on the other hand, has been reduced to a penny share.
Coursera has shown signs that its business is slowing. According to the most recent figures, the revenue of the company increased by only 6% in the third-quarter. Analysts predict that the company’s revenue in the third quarter will reach $176 million.
These revenue estimates will result in an annual revenue of $691 millions, which is 8.8% more than what was made by the company last year.
Analysts expect Coursera to slow down its revenue growth in the coming years. In 2025 its revenue is expected to be $737 millions, an increase of 6.6%. Coursera is known for consistently beating analyst’s expectations on earnings and revenue.
Case for COUR Stock
Coursera’s growth is slowing, but it still has a positive impact on the stock. Its business has seen some growth in all of its segments. According to the most recent figures, its consumer division had revenue of $102.3 millions during this quarter. This represents a YoY increase of 3%. Customers can watch the video lectures free of charge and pay for certificates.
Coursera’s enterprise division has grown faster than the consumer division, with its revenues increasing by 10% during the last quarter. The enterprise division’s growth is noteworthy, as it has a segment profit margin of 70%, compared with the consumer sector’s 54%.
The final smaller division, Degrees, grew 15% during the third quarter to $13.4 Million. This segment is small, but it’s also very profitable with a 100% segment margin.
Coursera’s other argument is that AI is not going to disrupt their business. Although platforms such as ChatGPT or Claude may be great, they can’t replace Coursera. Their platforms do not offer degrees like Coursera.
Coursera benefits as well from its partnerships with leading universities and companies. Its most prominent partners include the Imperial College London (ICL), Stanford University, Penn University and Google.
Coursera has an impressive balance sheet, with more than $719 millions in cash equivalents. It also boasts over $821 in assets. The company’s working capital is over $400 million. Its liabilities for the current year are only $314 million. The company has no debt and can therefore survive the current slowdown.
Coursera, too, is on the road to profitability. Analysts predict it will earn $0.3 per share in this year, and $0.34 by 2024. Its profit margin is expected to continue growing in future years. This will help justify its current valuation.
Coursera stock price analysis
TradingView’s COUR Stock Chart
In the last few weeks, the COUR’s share price was under pressure and moved in a sideways direction. The chart has now formed a double bottom pattern, with the price at $6.26. It was unable to go below this level in November and July of 2018. Double-bottoms are one of the bullishest chart patterns on the market.
Coursera’s stock is above its 50-day and100-day Exponential moving averages (EMA), forming a bullish cross-over. There is a case to be made for the stock. The next level to be watched is at $11.75, which was its high point on the 26th of July, about 42% higher than the current price.
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