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Youdao (DAO)
NYSE:DAO
DAO Stock Chart & Stats
$12.61
>-$0.01(-0.15%)
At close: 4:00 PM EST
$12.61
>-$0.01(-0.15%)
Day’s Range― - ―
52-Week Range$6.30 - $12.96
Previous CloseN/A
Volume14.27K
Average Volume (3M)128.14K
Market Cap
$1.22B
Enterprise Value$9.76B
Total Cash (Recent Filing)$738.02M
Total Debt (Recent Filing)$1.82B
Price to Earnings (P/E)82.2
Beta0.68
Next Earnings
May 26, 2026EPS Estimate
0.05Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)0.06
Shares Outstanding31,280,890
10 Day Avg. Volume111,582
30 Day Avg. Volume128,141
Financial Highlights & Ratios
PEG Ratio2.58
Price to Book (P/B)-4.22
Price to Sales (P/S)1.41
P/FCF Ratio0.00
Enterprise Value/Market Cap8.00
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit3.75
Enterprise Value/Ebitda52.65
Forecast
1Y Price Target
$12.00Price Target Upside-4.84% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.53
Revenue Forecast (FY)$6.57B
Bulls Say, Bears Say
Bulls Say
Healthy Gross MarginA near-49% gross margin on core products indicates durable unit economics for digital and software offerings. This margin provides structural cushion to absorb SG&A and R&D spending, supporting sustainable investment in AI and product development while preserving long-term profitability potential.
Rapid Online Marketing GrowthA 51% YoY expansion in online marketing diversifies revenue beyond education services, levering NetEase and overseas demand. Structural growth in this higher-growth segment can improve revenue mix, increase platform monetization, and partially offset cyclicality in core learning products over the medium term.
Accelerating AI Products & RetentionStrong AI-driven subscription growth and high retention indicate product-market fit for AI offerings. Certified Confucius translation tech and rising ARPU from subscriptions create a structural competitive advantage, enabling scalable revenue per user and longer customer lifetime value.
Bears Say
Negative Shareholders' EquityA large negative equity balance signals accumulated losses or balance sheet impairment, limiting financial flexibility and borrowing capacity. This structural weakness raises refinancing risk and constrains ability to fund strategic investments without dilutive or costly external financing.
Weak Cash GenerationZero operating and free cash flow in 2024 indicate the business is not self-funding growth and may rely on financing to sustain operations. Persistent weak cash conversion threatens sustainable investment in AI initiatives and increases vulnerability to funding cost or liquidity shocks.
Profitability & Core Segment DeclinesA steep operating profit decline, alongside falling Learning Services (-16.2%) and Smart Devices (-22.1%), shows structural demand or execution issues in core offerings. This reduces ability to cross-subsidize new product investments and creates sustained pressure on margins and long-term earnings stability.
Youdao News
DAO FAQ
What was Youdao’s price range in the past 12 months?
Youdao lowest stock price was $6.30 and its highest was $12.96 in the past 12 months.
What is Youdao’s market cap?
Youdao’s market cap is $1.22B.
When is Youdao’s upcoming earnings report date?
Youdao’s upcoming earnings report date is May 26, 2026 which is in 83 days.
How were Youdao’s earnings last quarter?
Youdao released its earnings results on Feb 11, 2026. The company reported $0.058 earnings per share for the quarter, beating the consensus estimate of $0.037 by $0.021.
Is Youdao overvalued?
According to Wall Street analysts Youdao’s price is currently Overvalued.
Does Youdao pay dividends?
Youdao does not currently pay dividends.
What is Youdao’s EPS estimate?
Youdao’s EPS estimate is 0.05.
How many shares outstanding does Youdao have?
Youdao has 31,280,890 shares outstanding.
What happened to Youdao’s price movement after its last earnings report?
Youdao reported an EPS of $0.058 in its last earnings report, beating expectations of $0.037. Following the earnings report the stock price went down -3.561%.
Which hedge fund is a major shareholder of Youdao?
Currently, no hedge funds are holding shares in DAO
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Youdao Stock Smart Score
Neutral
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10
Analyst Consensus
Moderate Buy
Average Price Target:
$12.00 (-4.84% Downside)
$12.00 (-4.84% Downside)
Blogger Sentiment
Neutral
DAO Sentiment 50%
Sector Average ―
Sector Average ―
Technicals
SMA
Positive
20 days / 200 days
Momentum
29.64%
12-Months-Change
Fundamentals
Return on Equity
―
Trailing 12-Months
Asset Growth
1.58%
Trailing 12-Months
Company Description
Youdao
Youdao, Inc., an internet technology company, provides online services in the field of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It offers online knowledge tools, which include Youdao and other dictionaries and translation tools; learning services consisting of tutoring, fee-based premium, and other services; STEAM courses, adult and vocational courses, and other courses, such as China University MOOC; smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, Youdao Smart Lamp, Youdao Pocket Translator, and Youdao Super Dictionary; education digitalization solutions comprising technologies and solutions licensed to schools or enterprise customers, such as Youdao Smart Learning Terminal, and Youdao Smart Cloud; and online marketing services. In addition, the company provides online courses comprising Youdao Premium Courses and NetEase Cloud Classroom, as well as technical support to the variable interest entities (VIEs). Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.
DAO Company Deck
DAO Earnings Call
Q4 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call conveyed clear positive momentum: strong Q4 revenue growth (+16.8%), record improvements in AI-driven subscription and online marketing businesses (many lines growing ~30–50% YoY), and the important milestone of the company's first full-year positive operating cash flow. Management emphasized an AI-native strategy, product innovation, global expansion of marketing services, and an expectation of continued growth in 2026 (including double-digit growth guidance for Learning Services). Headwinds include a notable decline in Smart Devices revenues (-26.6% Q4, -18.2% FY), margin pressure in online marketing (gross margin down YoY), and lower Q4 net income and operating income margin versus prior year. Overall, the positives — diversified revenue growth, improving cash generation, strong AI subscription and advertising performance, and clear strategic direction — outweigh the challenges, indicating constructive momentum going into 2026.View all DAO earnings summariesDAO Stock 12 Month Forecast
Average Price Target
$12.00
▼(-4.84% Downside)
Technical Analysis
Ownership Overview
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Insiders
2.59% Mutual Funds
31.59% Other Institutional Investors
62.99% Public Companies and
Individual Investors