UDMY Should I Buy
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Udemy Inc (UDMY) does not present a compelling buy opportunity at this time for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock's technical indicators are neutral, options sentiment is weak, financial performance is declining, and there are no strong positive catalysts to justify an immediate purchase.
The MACD is slightly positive but contracting, RSI is neutral at 42.713, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot level of 4.993, with support at 4.682 and resistance at 5.304. Overall, the technical indicators suggest a neutral trend.
The company is making progress in its Enterprise business with AI-related content and personalized learning solutions, as noted by analysts.
Hedge funds are aggressively selling the stock, with a 1269.62% increase in selling activity last quarter. Financial performance in Q4 2025 showed a decline in revenue (-2.98% YoY), net income (-76.39% YoY), and EPS (-71.43% YoY). Analysts have lowered the price target to $5, reflecting limited upside potential.
In Q4 2025, Udemy's 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 slightly to 66.01% (+3.76% YoY), but overall financials indicate a weakening performance.
Canaccord analyst Jason Tilchen lowered the price target to $5 from $7 and maintained a Hold rating. Analysts acknowledge the company's progress in its Enterprise business but remain cautious due to financial underperformance.
