UDMY Should I Buy
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At close0.000(0.000%)Aft-market
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Given the user's long-term investment preference and beginner level, Udemy Inc. is not a strong buy at this moment. The technical indicators are bearish, financial performance is weak, and there are no significant positive catalysts to justify immediate investment. Holding off for now is recommended.
The technical indicators are bearish. The MACD is below 0 and negatively contracting, RSI is neutral at 44.239, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 4.531, with resistance at 4.935.
The company is showing progress in its shift upmarket for the Enterprise business, with AI-related content and new personalized learning products gaining traction. Gross margin has increased by 3.76% YoY.
Hedge funds are selling heavily, with a 1269.62% increase in selling activity over the last quarter. Financial performance in Q4 2025 was weak, with revenue down 2.98% YoY, net income down 76.39% YoY, and EPS down 71.43% YoY. There are no significant insider or congress trading trends to support confidence in the stock.
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). Gross margin improved to 66.01% (+3.76% YoY), but overall financials indicate weak growth.
Canaccord analyst Jason Tilchen lowered the price target from $7 to $5 and maintained a Hold rating. While Q4 results slightly exceeded expectations, the overall sentiment remains cautious.
