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Upturn AI SWOT - About
Youdao Inc (DAO)
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Upturn Advisory Summary
10/30/2025: DAO (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $13.17
1 Year Target Price $13.17
| 5 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 2.05% | Avg. Invested days 24 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.30B USD | Price to earnings Ratio 40.37 | 1Y Target Price 13.17 |
Price to earnings Ratio 40.37 | 1Y Target Price 13.17 | ||
Volume (30-day avg) 8 | Beta 0.36 | 52 Weeks Range 4.54 - 11.82 | Updated Date 10/29/2025 |
52 Weeks Range 4.54 - 11.82 | Updated Date 10/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.27 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.05% | Operating Margin (TTM) 2.03% |
Management Effectiveness
Return on Assets (TTM) 11.19% | Return on Equity (TTM) - |
Valuation
Trailing PE 40.37 | Forward PE - | Enterprise Value 1339223008 | Price to Sales(TTM) 0.23 |
Enterprise Value 1339223008 | Price to Sales(TTM) 0.23 | ||
Enterprise Value to Revenue 1.69 | Enterprise Value to EBITDA 32.11 | Shares Outstanding 31280889 | Shares Floating 26257520 |
Shares Outstanding 31280889 | Shares Floating 26257520 | ||
Percent Insiders 4.35 | Percent Institutions 41.86 |
Upturn AI SWOT
Youdao Inc
Company Overview
History and Background
Youdao, Inc. (DAO) was founded in 2006 as part of NetEase, Inc. (NTES). Initially a search engine and online dictionary, it evolved into an intelligent learning company offering a range of educational products and services.
Core Business Areas
- Learning Services: Online courses and educational content covering various subjects, from K-12 to professional skills development. This includes premium courses with live instruction, interactive exercises, and personalized feedback.
- Learning Products: Smart devices and hardware designed to enhance learning, such as dictionaries, translators, smart pens, and language learning gadgets.
- Online Marketing Services: Advertising and promotional services provided to other companies to reach Youdao's user base, largely students and young professionals.
Leadership and Structure
Youdao Inc is led by Feng Zhou, the CEO. It operates as a subsidiary of NetEase, benefiting from its parent company's resources and infrastructure. Its management team consists of senior executives overseeing technology, content, marketing, and finance.
Top Products and Market Share
Key Offerings
- Youdao Dictionary Pen: A smart pen that scans and translates text. Market share is significant in the Chinese market for educational hardware, but exact figures are hard to obtain. Competitors include Baidu and smaller Chinese tech companies offering similar devices. Estimated revenue generation for 2023 approxiamtely 200-300 Million USD.
- Youdao Premium Courses: A range of online courses covering test preparation, language learning, and vocational skills. Competition includes New Oriental Education & Technology Group (EDU) and TAL Education Group (TAL), among other online education providers. Estimated revenue generation for 2023 approximately 400-500 Million USD.
Market Dynamics
Industry Overview
The online education market is experiencing substantial growth, driven by increasing internet penetration, demand for lifelong learning, and the convenience of online platforms. It is highly competitive and subject to evolving regulatory changes in China.
Positioning
Youdao occupies a niche as an intelligent learning company focusing on technology-enhanced education. Its competitive advantage lies in its integration of content, technology, and hardware to provide a comprehensive learning experience.
Total Addressable Market (TAM)
The global e-learning market is expected to reach hundreds of billions of dollars in the coming years. Youdao is positioned to capture a significant portion of the Chinese e-learning market through its integrated approach and technology focus.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in China
- Integration of technology and education
- Parent company support from NetEase
- Diverse product portfolio
Weaknesses
- Geographic concentration in China
- Reliance on regulatory environment in China
- Competitive intensity
- Potential for intellectual property infringement
Opportunities
- Expansion into new educational segments
- International market expansion
- Partnerships with educational institutions
- Development of AI-powered learning tools
Threats
- Changing regulatory landscape in China
- Intensified competition
- Economic downturns in China
- Technological disruptions
Competitors and Market Share
Key Competitors
- EDU
- TAL
- GOTU
Competitive Landscape
Youdao faces intense competition from established online education providers and emerging EdTech startups. Its advantage lies in its technology focus, integrated approach, and brand recognition. Its disadvantages include its geographic concentration and regulatory risks.
Major Acquisitions
N/A
- Year: 2022
- Acquisition Price (USD millions): 0
- Strategic Rationale: N/A
Growth Trajectory and Initiatives
Historical Growth: Youdao has experienced significant growth in revenue and user base, driven by its online courses and learning products.
Future Projections: Analyst estimates project continued growth for Youdao, driven by the expansion of its product offerings and the increasing demand for online education.
Recent Initiatives: Youdao has focused on developing AI-powered learning tools, expanding its course offerings, and strengthening its partnerships with educational institutions.
Summary
Youdao is a technology-driven education company with a strong brand in China. Its integrated approach and diverse product portfolio position it well for growth, but it faces intense competition and regulatory risks. The company must continue to innovate and expand its market reach to maintain its competitive edge.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
- Company Website
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Youdao Inc
Exchange NYSE | Headquaters - | ||
IPO Launch date 2019-10-25 | CEO & Director Mr. Feng Zhou | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 3750 | Website https://www.youdao.com |
Full time employees 3750 | Website https://www.youdao.com | ||
Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The learning services mainly include tutoring services and fee-based premium services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It also offers online knowledge tools, which include Youdao and other dictionaries and translation tools, as well as AI-based learning tools; STEAM courses through Youdao Premium Courses; adult courses through NetEase Cloud Classroom, such as foreign language, preparing for an exam, and picking up a new skill; and other courses consisting of China University MOOC courses. In addition, the company provides smart devices comprising Youdao Dictionary Pen, and Youdao Listening Pod, and Youdao Smart Learning Pad; education digitalization solutions, such as technologies and solutions licensed to schools or enterprise customers, including Youdao Smart Learning Terminal, Youdao Sports, and Youdao Smart Cloud; and online marketing services consisting of performance-based and brand advertising services. Further, it offers technical support to the variable interest entities (VIEs). The company was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.
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