Udemy Stock Drops 35.7%: Investment Risks and Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy UDMY?
Source: Yahoo Finance
- Significant Stock Decline: Udemy's stock has dropped 35.7% over the past six months, now trading at $4.76, which raises concerns among investors about its future performance and could negatively impact market confidence and investment appeal.
- Weak Revenue Growth: Analysts project only a 2% revenue increase for Udemy over the next 12 months, indicating a slowdown that suggests demand headwinds for its products and services, potentially leading to a decline in valuation multiples and shareholder returns.
- Inefficient Marketing: Udemy has spent 63% of its gross profit on sales and marketing over the past year, highlighting a costly user acquisition strategy that reflects a lack of differentiation in a highly competitive market, which may further erode profit margins.
- Significant Valuation Risks: Although Udemy's stock trades at a seemingly cheap 3.6× forward EV/EBITDA, its shaky fundamentals present considerable downside risks, prompting analysts to recommend looking for more attractive investment opportunities elsewhere.
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Analyst Views on UDMY
Wall Street analysts forecast UDMY stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 4.780
Low
7.00
Averages
8.90
High
11.00
Current: 4.780
Low
7.00
Averages
8.90
High
11.00
About UDMY
Udemy, Inc. is a global learning company. The Company’s online platform empowers organizations and individuals with professional skill acquisition, development and validation. Its learning marketplace enables instructors to develop, distribute and enhance content. It leverages technology, including artificial intelligence (AI), and data and insights, to deliver personalized learning experiences. Its segments include Enterprise and Consumer. The Enterprise segment is engaged in selling subscription licenses to a variety of enterprise and government customers. The Consumer segment is focused on selling access to course content directly to individual learners. Through its Intelligent Skills Platform and a global community of diverse and knowledgeable instructors, millions of learners gain expertise in a wide range of technical and professional skills from generative AI to leadership. Its product offerings are Per Course, Subscriptions and Professional Services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investor Rights Law Firm Investigates Multiple Companies
- Insider Trading Investigation: Halper Sadeh LLC is investigating the sale of Janus Henderson Group plc at $49.00 per share, which may violate shareholder rights, potentially leading to increased compensation for shareholders if violations are confirmed.
- Shareholder Rights Protection: The firm is also examining Udemy, Inc.'s sale, where shareholders receive 0.800 shares of Coursera for each Udemy share, which may limit shareholder options; shareholders can learn about their rights through the firm.
- FONAR Corporation Sale: FONAR Corporation is selling shares to its CEO and executives at $19.00 per share for Class B and $6.34 for Class C, with Halper Sadeh LLC potentially seeking higher prices and additional disclosures for shareholders.
- Legal Service Commitment: Halper Sadeh LLC offers legal services on a contingency basis, ensuring no upfront costs for clients, aiming to protect investors globally, particularly against securities fraud and corporate misconduct.
See More
Udemy Stock Drops 35.7%: Investment Risks and Opportunities
- Significant Stock Decline: Udemy's stock has dropped 35.7% over the past six months, now trading at $4.76, which raises concerns among investors about its future performance and could negatively impact market confidence and investment appeal.
- Weak Revenue Growth: Analysts project only a 2% revenue increase for Udemy over the next 12 months, indicating a slowdown that suggests demand headwinds for its products and services, potentially leading to a decline in valuation multiples and shareholder returns.
- Inefficient Marketing: Udemy has spent 63% of its gross profit on sales and marketing over the past year, highlighting a costly user acquisition strategy that reflects a lack of differentiation in a highly competitive market, which may further erode profit margins.
- Significant Valuation Risks: Although Udemy's stock trades at a seemingly cheap 3.6× forward EV/EBITDA, its shaky fundamentals present considerable downside risks, prompting analysts to recommend looking for more attractive investment opportunities elsewhere.
See More
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- Financial Condition Analysis: Lumen reported $12.4 billion in revenue for 2025, down from $13.1 billion in 2024, while capital expenditures rose to $4.4 billion, highlighting financial strain during its transition.
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- Asset Allocation Shift: AppFolio's weighting in Insight Holdings' 13F assets dropped to 0.78% from 2.6% in the previous quarter, reflecting a broader trend of fund downsizing that may affect market attention towards AppFolio.
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- Decline in Position Value: The quarter-end value of AppFolio's position decreased by $31.70 million, highlighting the negative impact of trading activity and stock price fluctuations on asset management.
- Asset Allocation Shift: AppFolio now accounts for only 0.78% of Insight Holdings' 13F reportable assets, down from 2.6% in the previous quarter, suggesting a broader strategy of asset downsizing.
- Poor Market Performance: As of February 17, 2026, AppFolio shares were priced at $168.79, reflecting a 20.6% decline over the past year and underperforming the S&P 500 by 34.25 percentage points, illustrating the dual pressures from the cooling real estate market and high-multiple SaaS valuations.
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Investor Rights Law Firm Investigates Multiple Companies
- Insider Trading Investigation: Halper Sadeh LLC is investigating the sale of Janus Henderson Group plc at $49.00 per share, which may violate shareholder rights, potentially leading to increased compensation for shareholders if violations are confirmed.
- Shareholder Rights Protection: The firm is also examining Udemy, Inc.'s sale, where shareholders receive 0.800 shares of Coursera for each Udemy share, which may limit shareholder options; shareholders can learn about their rights through the firm.
- FONAR Corporation Sale: FONAR Corporation is selling shares to its CEO and executives at $19.00 per share for Class B and $6.34 for Class C, with Halper Sadeh LLC potentially seeking higher prices and additional disclosures for shareholders.
- Legal Service Commitment: Halper Sadeh LLC offers legal services on a contingency basis, ensuring no upfront costs for clients, aiming to protect investors globally, particularly against securities fraud and corporate misconduct.
See More
Udemy Stock Drops 35.7%: Investment Risks and Opportunities
- Significant Stock Decline: Udemy's stock has dropped 35.7% over the past six months, now trading at $4.76, which raises concerns among investors about its future performance and could negatively impact market confidence and investment appeal.
- Weak Revenue Growth: Analysts project only a 2% revenue increase for Udemy over the next 12 months, indicating a slowdown that suggests demand headwinds for its products and services, potentially leading to a decline in valuation multiples and shareholder returns.
- Inefficient Marketing: Udemy has spent 63% of its gross profit on sales and marketing over the past year, highlighting a costly user acquisition strategy that reflects a lack of differentiation in a highly competitive market, which may further erode profit margins.
- Significant Valuation Risks: Although Udemy's stock trades at a seemingly cheap 3.6× forward EV/EBITDA, its shaky fundamentals present considerable downside risks, prompting analysts to recommend looking for more attractive investment opportunities elsewhere.
See More
Westerly Capital Reduces Lumen Technologies Holdings
- Share Reduction Details: Westerly Capital Management reduced its Lumen Technologies holdings by 2.7 million shares in Q4 2025, with an estimated transaction value of $22.22 million, indicating potential investor skepticism about the company's future direction.
- Impact on Holdings: Following the sale, Lumen now represents only 1.37% of Westerly's assets under management, down from 6.7% in Q3, reflecting a significant loss of confidence in the company's strategic shift.
- Financial Condition Analysis: Lumen reported $12.4 billion in revenue for 2025, down from $13.1 billion in 2024, while capital expenditures rose to $4.4 billion, highlighting financial strain during its transition.
- Future Outlook: Although Lumen aims to focus on fiber solutions to meet AI demands, its over $17 billion debt and declining revenue suggest that it is not an opportune time to invest, with recommendations to monitor performance over the next few quarters.
See More
Insight Holdings Reduces AppFolio Stake Significantly
- Stake Reduction Impact: Insight Holdings Group reduced its AppFolio position by 108,050 shares in Q4 2025, resulting in a $31.70 million decline in value, indicating a waning confidence in the company's prospects within its overall asset allocation.
- Asset Allocation Shift: AppFolio's weighting in Insight Holdings' 13F assets dropped to 0.78% from 2.6% in the previous quarter, reflecting a broader trend of fund downsizing that may affect market attention towards AppFolio.
- Poor Market Performance: As of February 17, 2026, AppFolio shares were priced at $168.79, down 20.6% over the past year, significantly underperforming the S&P 500 by 34.25 percentage points, highlighting the cooling narratives in both real estate and high-multiple SaaS sectors.
- Business Model Challenges: AppFolio's revenue growth hinges on the number of units managed and the utilization of additional services; investors should monitor whether it can evolve into a financial backbone for clients, thereby increasing revenue per unit and enhancing competitive positioning.
See More
Insight Holdings Reduces AppFolio Stake Significantly
- Share Reduction Details: Insight Holdings Group reduced its stake in AppFolio by 108,050 shares during Q4 2025, with an estimated trade size of $25.68 million, indicating a waning confidence in the stock.
- Decline in Position Value: The quarter-end value of AppFolio's position decreased by $31.70 million, highlighting the negative impact of trading activity and stock price fluctuations on asset management.
- Asset Allocation Shift: AppFolio now accounts for only 0.78% of Insight Holdings' 13F reportable assets, down from 2.6% in the previous quarter, suggesting a broader strategy of asset downsizing.
- Poor Market Performance: As of February 17, 2026, AppFolio shares were priced at $168.79, reflecting a 20.6% decline over the past year and underperforming the S&P 500 by 34.25 percentage points, illustrating the dual pressures from the cooling real estate market and high-multiple SaaS valuations.
See More
Insight Holdings Fully Exits SentinelOne Position Amid Market Challenges
- Complete Exit: According to a February 17, 2026 SEC filing, Insight Holdings Group, LLC sold its entire position of 8,425,026 shares in SentinelOne during Q4, with an estimated transaction value of $148.36 million, indicating a significant loss of confidence in the company.
- Poor Market Performance: As of February 17, 2026, SentinelOne's stock was priced at $13.40, down 45% over the past year, significantly underperforming the S&P 500 by 57.88 percentage points, reflecting widespread pessimism in the cybersecurity sector.
- Portfolio Reallocation: This transaction reduced Insight Holdings' stake in SentinelOne from over 9% to just 0.7%, suggesting a strategic shift away from the cybersecurity sector, likely due to the company's ongoing losses and the industry's overall poor performance.
- Uncertain Profitability Outlook: Despite a relatively low price-to-sales ratio of less than 5, SentinelOne's continuous net losses and lack of a clear path to profitability have led investors to adopt a cautious stance, with Insight's exit further underscoring the market's lack of confidence in the company's future.
See More
