Is Gaotu Techedu Stock a Buy?
Share prices of Gaotu Techedu (NYSE: GOTU), the Chinese online education company formerly known as GSX Techedu, surged 26% on Sept. 22 after it posted its second-quarter earnings report. The company's revenue rose 35% year over year to 2.23 billion yuan ($345.1 million), but its net loss of 918.9 million yuan ($143 million) marked a steep drop from its net profit of 18.6 million ($2.9 million) a year ago. Gaotu's top-line growth still looks impressive, but its stock has lost over 90% of its value this year as Chinese regulators cracked down on the country's for-profit education companies.
