Online learning platform Udemy appears to be turning a corner after months of stock pressure, with market strategists highlighting its strategic shift toward artificial intelligence training as a potential growth catalyst.
Market Strategists Back Transformation Strategy
Two prominent research firms have recently reaffirmed confidence in Udemy’s equity. Canaccord Genuity maintained its "buy" recommendation with a $12 price target, citing the company’s refined go-to-market strategy. Cantor Fitzgerald raised its target from $9 to $10, noting early signs of success in CEO Gregg Coccari’s "Udemy 2.0" restructuring initiative.
The platform’s evolution from general online courses to specialized AI training for corporate clients represents its most significant strategic move. This repositioning targets businesses scrambling to upskill workforces in artificial intelligence applications.
Financial Metrics Show Promising Trajectory
Second-quarter 2025 results surpassed projections with earnings per share of $0.16 (versus $0.12 estimates) on $200 million revenue. Notably, the company achieved its first GAAP net profit since going public, recording approximately $6 million in net income. While the consumer marketplace saw slight contraction, the B2B segment expanded by 7%.
Should investors sell immediately? Or is it worth buying Udemy?
Key Performance Indicators:
- Year-over-year revenue growth: +3%
- Gross margin improvement to 67%
- Q3 revenue guidance: $190-195 million
- Raised full-year EBITDA forecast: $84-89 million
Institutional Investors Increase Exposure
The strategic shift has attracted substantial institutional interest. Connor Clark & Lunn boosted its stake by 139% in Q1, while Vanguard expanded its position by 12%. Institutional holders now control nearly 80% of outstanding shares—a significant vote of confidence.
Despite recent gains, the stock remains depressed, trading around €5.92—39% below its 52-week high of €9.67. With a beta coefficient of 1.78, share price movements will likely remain volatile as investors assess the execution of Udemy’s AI-focused strategy.
Market observers anticipate upcoming quarterly reports will prove decisive in determining whether Udemy’s specialized training approach can sustain momentum and reverse its longer-term decline.
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