UDMY Should I Buy
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Udemy Inc (UDMY) is not a strong buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock lacks significant positive catalysts, has weak financial performance, and shows bearish trading trends. It is better to hold off on investing in this stock at the moment.
The MACD is positive and expanding (0.0586), indicating a bullish momentum. However, the RSI is neutral at 74.18, and moving averages are converging, showing no strong directional trend. Key resistance levels are at R1: 5.052 and R2: 5.283, with support at S1: 4.303 and S2: 4.072.
The company is shifting upmarket in its Enterprise business, with AI-related content and new products showing potential for long-term growth. Gross margin increased by 3.76% YoY to 66.01%.
Hedge funds are heavily selling, with a 1269.62% increase in selling activity last quarter. Financial performance is weak, with revenue, net income, and EPS all showing significant declines YoY. No recent news or congress trading data to indicate positive sentiment.
In Q4 2025, revenue dropped by -2.98% YoY to $193.99M, net income fell by -76.39% YoY to -$2.33M, and EPS decreased by -71.43% YoY to -0.02. Gross margin improved slightly to 66.01%, up 3.76% YoY.
Canaccord analyst Jason Tilchen lowered the price target from $7 to $5 and maintained a Hold rating, citing solid Q4 results but concerns about broader financial performance.
