UDMY Should I Buy
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Udemy Inc (UDMY) is not a strong buy at the moment for a beginner investor with a long-term focus. The stock is experiencing significant pre-market losses (-10.68%), hedge funds are heavily selling, and the company's financial performance shows declining revenue, net income, and EPS. While there are some positive developments in its enterprise shift and AI-related products, the overall sentiment and data do not suggest a compelling entry point for long-term investment.
The MACD histogram is positive (0.0309) but contracting, indicating weakening momentum. RSI is neutral at 40.973, and moving averages are converging, showing no clear trend. Key support levels are at 4.353 and 4.081, with resistance at 5.236 and 5.508. The stock is trading below its pivot point (4.795), reflecting bearish sentiment.
The company's enterprise shift and AI-related products, such as custom role-play simulations and MCP server, are showing signs of success and could drive future growth.
Significant pre-market price drop (-10.68%), hedge funds are aggressively selling (1269.62% increase in selling), and financial performance shows a YoY decline in revenue (-2.98%), net income (-76.39%), and EPS (-71.43%).
In Q4 2025, revenue dropped to $193.99M (-2.98% YoY), net income fell to -$2.33M (-76.39% YoY), and EPS declined to -$0.02 (-71.43% YoY). However, gross margin improved to 66.01% (+3.76% YoY).
Canaccord analyst Jason Tilchen lowered the price target from $7 to $5 and maintained a Hold rating. Despite solid Q4 results slightly ahead of expectations, the analyst remains cautious due to broader challenges.
