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The latest announcement is out from Youdao ( (DAO) ).
On August 14, 2025, Youdao, Inc. announced its unaudited financial results for the second quarter ending June 30, 2025. The company reported a 7.2% increase in total net revenues to RMB1.4 billion, with significant growth in online marketing services and a notable decrease in smart device revenues. The quarter marked Youdao’s first-ever profitable second quarter, driven by the successful execution of its AI Native Strategy, including the release of new AI products and services. Despite a decrease in gross margin, Youdao achieved an income from operations of RMB28.8 million, a significant improvement from the previous year’s loss. The company continues to focus on advancing its AI capabilities to enhance customer value and strengthen its financial metrics.
The most recent analyst rating on (DAO) stock is a Hold with a $8.10 price target. To see the full list of analyst forecasts on Youdao stock, see the DAO Stock Forecast page.
Spark’s Take on DAO Stock
According to Spark, TipRanks’ AI Analyst, DAO is a Neutral.
The overall stock score of 55 reflects a mixed outlook. Financial performance is hindered by leverage and cash flow issues, despite revenue growth. Technical indicators show stability, but valuation concerns due to a high P/E ratio and no dividend yield weigh negatively. The earnings call provided some positive developments, but these were not enough to fully offset the challenges.
To see Spark’s full report on DAO stock, click here.
More about Youdao
Youdao, Inc. is an AI-powered solutions provider specializing in artificial intelligence applications for the learning and advertising verticals. The company focuses on enhancing productivity and return on investment through innovative AI-driven services and products.
Average Trading Volume: 65,901
Technical Sentiment Signal: Buy
Current Market Cap: $1.06B
For detailed information about DAO stock, go to TipRanks’ Stock Analysis page.