Udemy Stock Drops 35.7%: Investment Risks and Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 11 2026
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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.
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.
