Breaking
Unseen Profit
Author

admin

Browsing
World News

Humacyte stock may fail to sustain today’s gains: find out more

Shares of Humacyte Inc (NASDAQ: HUMA) nearly doubled on Friday after receiving full approval for its flagship SYMVESS product from the US Food and Drug Administration (FDA).

Regulatory approval for the company’s bioengineered human tissue marks a major step forward in regenerative medicine and trauma care.

Humacyte stock sure has made its investors a happy lot today – but a more important question is: would it be able to sustain its recent gains heading into the next year?

Unfortunately, there’s reason to believe it may not.  

Insiders have been unloading Humacyte stock

Recent insider moves have not been particularly encouraging in Humacyte.

Brady W. Dougan – its board member who’s married to chief executive Laura Niklason sold a total of 1.5 million shares of Humacyte via his LLC called Ayabudge for $6.6 million in November.   

Insider selling is often considered negative because it signals a lack of confidence in the company’s future prospect.

That’s because executives and board members usually have more information than an average investor.

So, when they trim or sell their stake entirely, it typically suggests they see the stock as overvalued or expect the company to face challenges ahead.

If any of those assumptions prove true, Humacyte stock may end up losing today’s gain over the next few weeks.

HUMA is yet to turn a quarterly revenue

FDA’s approval for Humacyte’s SYMVESS sure is a big news for regenerative medicine.

But one must not forget that it continues to be a pre-revenue company for now. Humacyte lost $39.2 million in its third financial quarter – a significant increase from $26 million a year ago.

The Nasdaq listed firm ended its Q3 with $71 million in cash, cash equivalents, and restricted cash, which suggests it may have to dilute its shareholders to fund operations moving forward.  

What’s also worth mentioning is that Humacyte stock was worth about $3.0 before today’s gain.

So, there’s possibility that investors are manipulating its modest price tag to pump it up before unloading all of it to lock in sizeable profits.

Humacyte faces litigation for misleading investors

Finally, Humacyte is currently grappling with a class-action lawsuit over allegedly misleading investors about the regulatory compliance of its production facilities.

The biotech firm has failed to share critical information with its investors about its business and operations.

If such allegations prove to be true, “the company’s conduct constitutes a serious violation of securities laws,” as per Reed Kathrein of Hagens Berman – a law firm investigating the matter.

And it’s not like Humacyte stock pays a dividend to reward its shareholders for their patience through the turbulence.

Nonetheless, Wall Street has a consensus “buy” rating on Humacyte shares with price targets going as high as $25 at writing.

The post Humacyte stock may fail to sustain today’s gains: find out more appeared first on Invezz

Keep Reading
World News

These 2 stocks are positioned to outperform in January

Thwarted expectations of up to 4 rate cuts in 2025 have sent US stocks tumbling down in recent days.

But investors could improve their chances of winning outsized returns in January if they stuck with low momentum names as, historically, they tend to outperform their high momentum peers early in the year, as per Julian Emanuel of Evercore ISI.

Additionally, he recommends investing in smaller stocks to beat the market in January.

In fact, Julian expects smaller stocks to remain strong throughout the year as Trump’s pro-business policies and accommodating credit regulations take effect.

Lastly, stocks that offer buybacks typically start the new year on a bullish note when the Fed is cutting interest rates, the investment firm told clients in a research note on Friday.

Two names that meet these three criteria and are worth owning heading into January are Cleveland-Cliffs Inc (NYSE: CLF) and Gentherm Inc (NASDAQ: THRM), according to Julian Emanuel.

Cleveland-Cliffs Inc

Cleveland-Cliffs has been rather painful for its shareholders this year but the start of the new year will likely breathe new life into this steel stock, as per the Evercore ISI analyst.

In fact, he’s not the only who’s uber bullish on CLF.

Last week, experts at Goldman Sachs assumed coverage of Cleveland-Cliffs stock with a “buy” rating.

Their $16 price target indicates potential for a more than 70% upside from here.

The investment bank expects CLF’s self-help initiatives aimed at cost control to prove successful.

It’s positive on Cleveland-Cliffs stock also because value-enhancing projects could help drive earnings growth and margin expansion in 2025.

Goldman Sachs is bullish on the company’s $2.5 billion acquisition of Stelco as well.

CLF shares, however, remain unattractive for income investors as they do not currently pay a dividend.

Gentherm Inc

Another name that meets Evercore ISI’s criteria and may, therefore, outperform in January is the automotive stock Gentherm.

Much like CLF, Gentherm has been in a sharp downturn over the past ten months and is now trading at a rather attractive valuation.

Gentherm stock recently received an upgrade from JPMorgan that cited solid execution for the change of heart.

“The company has benefitted considerably from its 2022 acquisition of Alfmeier, including via greater than expected revenue synergies stemming from go-to-market improvements and faster product innovation,” its analyst Ryan Brinkman told clients at the time.

The consensus rating on Gentherm shares currently sits at “overweight”, with one analyst indicating potential for upside to as much as $68 that translates to about an 80% stock price increase from current levels.

THRM, however, does not pay a dividend at writing either.

The post These 2 stocks are positioned to outperform in January appeared first on Invezz

Keep Reading
Politics

The growing power of the individual investor

Professional investors have long held significant advantages over individual investors. They have vast resources at their disposal, including technology, data, and dedicated teams of market analysts.

The prevailing wisdom is that the playing field is so skewed against smaller investors that they have virtually no shot at gaining an edge over the larger players shaping the market.

However, the reality is that individuals have much more power in the market today than they ever have before, and their prospects are only improving.

Individual investors (also known as retail investors) are claiming a growing portion of overall trading volume, reaching a record high of 23% in January 2023, up from just 11% in 2011.

There has also been a notable increase in investment among U.S. families: the Federal Reserve reports that 21% of families held direct stock ownership in 2022, compared to 15% in 2019.

Let’s examine some factors enabling smaller investors to create a more level playing field. 

Better access to financial information

A few decades ago, large professional investors were the gatekeepers of proprietary research and in-depth analysis of company performance.

These organizations kept their insights closely guarded, making it difficult for individuals to access the same level of information.

Instead, smaller investors had to piece together details from sources such as newspapers, consultations with brokers, and corporate annual reports.

This process could be time-consuming and expensive, and the information was often outdated when it reached investors.

Today, the internet has enabled individuals to access detailed financial information on demand.

Small investors can now review real-time market data, analyst ratings, company news, and financial reports, equipping them to make more informed decisions and react quickly to market changes.

Lower-cost trades

The cost of trading has also undergone a significant transformation.

Before the deregulation of commissions in 1975, investors had to pay a standard 4% total commission on trades — 2% when buying a stock and another 2% when selling.

This high cost meant that only the most promising investments were worth the risk.

The rise of discount brokers, and more recently, commission-free trading platforms like Robinhood, has made trading far more accessible to the masses.

Individual investors can now buy and sell stocks without paying hefty fees, unlike professional investors, who are still often saddled with considerable trading costs.

Flexibility to move at their own pace

Because professional investors typically manage other people’s money, they face pressure from their clients to deliver returns in a timely fashion.

Individual investors, meanwhile, are free to operate on their timelines without having to answer to external stakeholders.

They have the luxury of waiting for the right opportunities to emerge — a good pitch to swing at, so to speak.

Opportunities to invest in smaller companies

The ability to invest in smaller and lesser-known companies is a key opportunity for individual investors.

Because professional investors buy and sell substantial volumes of stock at once, their trades often impact share prices: buying drives prices up, while selling drives them down.

As a result, they are typically limited to trading large-cap stocks that can accommodate the volume they need to move.

Individual investors, on the other hand, are far more nimble and can trade without worrying about moving the market.

This flexibility allows them to invest in companies of all sizes, giving them access to avenues for investment that big firms typically can’t tap into.

Small investors are also in a great position to seek out opportunities to invest in successful regional companies that they interact with in their daily lives.

Uncovering valuable ‘stocks under rocks’

Smaller companies have outperformed large-cap stocks for the better part of the last century, and today’s investors are finally starting to reap the benefits of this trend.

At Tulane University’s A. B. Freeman School of Business, the Burkenroad Reports program explores the kinds of stocks that hold unique value for individual investors. Through this program, students conduct in-depth research on under-the-radar small-cap stocks — which we like to call “stocks under rocks.”

Their reports focus on companies that may be overlooked by professional investors but offer significant potential for growth. Burkenroad Reports are publicly available, providing investors with high-quality, unbiased analysis that helps uncover hidden gems in the market.

For those interested in exploring further, some other free resources for smaller investors include:

By leveraging these resources, individual investors can seize opportunities that aren’t available to the pros, solidifying their growing influence in the stock market.

(Peter Ricchiuti is a Finance Professor at Tulane University’s A.B. Freeman School of Business. Views are his own.)

The post The growing power of the individual investor appeared first on Invezz

Keep Reading
World News

Southeast Asia lags behind in AI funding despite $60 billion global boom

Southeast Asia, a region of over 675 million people, is emerging as a focal point for global investment in cloud services and data centres, with tech giants like Nvidia and Microsoft planning to invest up to $60 billion in the coming years.

However, the region’s own AI startups are struggling to attract attention from venture capitalists, according to a Bloomberg report,.

Despite boasting over 2,000 AI startups, the region has secured just $1.7 billion in funding this year, a small fraction of the $20 billion invested in the Asia-Pacific, according to Preqin data.

This disparity raises concerns about the region’s ability to compete with AI leaders in the US and China.

What hinders AI growth in Southeast Asia?

Southeast Asia’s AI ecosystem is caught in a paradox.

While its young and tech-savvy population increasingly embraces digital technologies like generative AI, video streaming, and e-commerce, the region’s AI startups face significant hurdles.

Investors remain hesitant to fund unproven entities, particularly in a region with cultural and economic diversity that complicates scaling AI solutions.

The region has recorded just 122 AI funding deals this year, compared to 1,845 across the broader Asia-Pacific.

Globally, the US attracted $68.5 billion in AI funding in 2024, while China secured $11 billion, underscoring the stark gap in capital flows to Southeast Asia.

Investors often question whether local tech companies can scale profitably on the global stage, with challenges stemming from fragmented datasets and varying infrastructure across countries like Indonesia, Malaysia, and the Philippines.

Singapore, however, stands out as a bright spot.

Ranked third globally in AI readiness, the city-state is home to numerous AI scientists and a thriving tech hub.

But even Singapore cannot single-handedly address the region’s lack of foundational AI models, robust software engineering, and scalable hardware capabilities, areas critical to global AI competitiveness.

Governments, ecosystems, and the path forward

Southeast Asian governments have recognised AI’s potential and are developing national AI frameworks to address the funding gap.

Singapore, for instance, has introduced initiatives to support AI startups through state-backed investment vehicles.

However, experts argue that fragmented national strategies need to give way to coordinated regional efforts.

A report by Google, Temasek, and Bain highlights that Southeast Asia’s private capital markets are experiencing a downturn, with funding expected to hit record lows.

The lack of lucrative exits and weak IPO activity further deters venture capitalists from backing startups, leaving many without the financial support necessary to scale.

Despite the challenges, Southeast Asia’s broader digital economy is growing rapidly, supported by a rising middle class and expanding mobile and internet access.

Countries in the region are also relatively insulated from geopolitical tensions between the US and China, providing a unique opportunity for long-term stability in AI investments.

Some AI startups in the region are finding success by focusing on early-stage data collection and organisation, creating the foundation for scalable AI solutions.

Singapore-based Patsnap Pte has spent nearly two decades building comprehensive datasets spanning patents, chemicals, and other industries, which are now being used to train advanced AI models.

Meanwhile, Indonesia’s Alpha JWC, in partnership with the Pijar Foundation, is creating a sandbox environment to connect emerging AI talent with large corporations.

Experts emphasise that the ecosystem must evolve for the region to unlock its AI potential. Regulators, governments, and industry stakeholders need to collaborate more effectively to ensure that Southeast Asia can build a competitive AI industry.

While the funding shortfall is a significant obstacle, the region’s growing digital economy, strategic geographic position, and untapped market potential provide a promising foundation for future growth.

The post Southeast Asia lags behind in AI funding despite $60 billion global boom appeared first on Invezz

Keep Reading
Business

Expensive Asana stock price could surge by 195% in 2025

Asana stock price has suffered a harsh reversal in the past few days as investors fade the December 5 earnings surge. ASAN shares retreated to $21.65, down by over 22% from the highest point this month. Is this SaaS stock a good one to invest in?

Asana’s is a leader in its business

Asana is a technology company offering thousands of companies global project management solutions. Some of its top clients include Danone, Spotify, and Gannett. 

According to Gartner, Asana is one of the industry leaders. Its top competitors include Smartsheet, Wrike, Monday, Airtable, Atlassian, and ClickUp. 

The collaboration industry has grown in the past few years as more companies have embraced remote work and technology. This means that the industry has a large total addressable market and strong competition.

Asana’s business has grown well in the past few years, with revenue jumping from over $142 million in 2019 to over $706 million in the trailing twelve months. This growth happened as the number of core clients spending $5,000 a year rose to 23,609.

Asana benefits from having thousands of customers and often experiencing low churn, meaning that its clients rarely move to competitors. The most recent results showed that its retention rate was about 98%, higher than most companies.

The challenge, however, is that Asana’s business is slowing as competition rises. Signing up new large customers is also becoming difficult because they already have their providers.

Asana’s slow growth and AI hopes

Recent results showed that Asana’s revenue rose by 10% to $183 million. Analysts expect that Asana’s fourth-quarter revenues will come in at $188 million, up by about 9.9% from last year. This growth will bring its total annual revenue to $723 million, up by 10.8% from a year earlier. 

Asana’s revenue will then rise by another 10% to $802.9 million in the next financial year. Its real numbers will likely be better than estimates because it has a long history of beating the consensus. Asana hopes that its AI solutions will help to supercharge its business trajectory. It has built AI Studio and Smart Workflows that are helping customers boost their productivity.

Profitability has been another challenge as the company has continued to lose money in the past few years. Its cumulative net loss in the last five financial years stood at about $1 billion. Fortunately, it is now reducing its losses, with its Q3 loss at $60 million. Analysts see Asana’s loss per share narrowing from 14 cents this year to just 0.01 cents next year.

There are concerns about Asana’s valuation. It has a market cap of over $4 billion and a rule of 40 metric of just 8%. This figure is calculated by adding the company’s profit margin and growth metric, and it is a sign that it prioritizes growth over profits.

Read more: Vista and Blackstone to acquire software maker Smartsheet in $8.4 billion deal

Asana stock price forecast

A closer look at Asana’s weekly chart shows that it closely resembles most altcoins. It formed a double-bottom chart pattern at $11.33 and a neckline at $26. A double-bottom pattern often leads to a strong bullish breakout. 

Therefore, while Asana stock is highly overvalued, it will likely stage a strong comeback soon, especially if it continues to report strong results. If this happens, the next point to watch in 2025 will be the 38.2% Fibonacci Retracement level at $62.37, which is about 195% above the current level.

The post Expensive Asana stock price could surge by 195% in 2025 appeared first on Invezz

Keep Reading
Business

As the ZipRecruiter stock price implodes, will it rebound in 2025?

ZipRecruiter (ZIP) stock price has imploded and crashed to a record low as concerns about its growth in a difficult job market continue. It has slipped to an all-time low of $7.13, down by almost 80% from its all-time high. This crash has brought its valuation to below $700 million.

ZipRecruiter’s growth problem

ZipRecruiter is a well-known company by individuals and companies in the United States and worldwide. Its technology lets companies create job descriptions and post them on multiple job listing platforms. 

Users can also search for jobs and apply on its platform. The challenge, however, is that this market is highly competitive, with a platform like LinkedIn, which is owned by Microsoft, having a substantial market share.

ZipRecruiter’s business has been rough in the past few years as its growth slowed and competition rose. Its annual revenue jumped from $429.6 million in 2019 to $904 million in 2022 as the pandemic happened. 

Its annual revenue then dropped to $645 million in 2023 and to $498 million in the trailing twelve months. 

The company blamed the slowdown on the labor market as recent numbers showed that the unemployment rate rose to 4.2%. Many large companies are no longer hiring as they did in the past as they focus on efficiency. 

The most recent results showed that its business continued to deteriorate. Revenue dropped by a whopping 25% to $117 million, and the number of quarterly-paid employees dropped by 27% to 65.2k. 

The results also showed that its losses continued to mount, with a net loss of over $2.6 million. Its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $15 million. 

The company expects that its revenue for the fourth quarter will be between $104 million and $110 million. That will be a big drop from the $135 million it made the same period a year ago. The average estimate among analysts is that its revenue will be $107.7 million, down by 20% on a YoY basis.

Annual revenue will drop by 27.1% year over year to about $470 million. Analysts also expect that in 2025, revenue will fall to $465 million, continuing a long-standing trend.

The challenging labor market and AI

Other recruiting companies have also plunged this year. Kelly Services stock has imploded by 40%, while Robert Half has dropped by almost 20% in the same period. Manpower Group stock has fallen by 28% this year.

ZipRecruitor’s biggest challenge is that more companies have embraced LinkedIn because of its unique dataset. LinkedIn has over 1 billion users worldwide and many companies find recruiting there being easy. It also faces competition from firms like Indeed, Glassdoor, Monster, and even Craigslist.

ZipRecruitor is not adding paid customers as the number dropped by 27% on a YoY basis, which the firm blamed to SMBs and the uncertainty in the labor market. The revenue that these companies pay is also not growing.

Artificial intelligence has also disrupted the company’s business, allowing companies to hire faster and bypass traditional listing boards. 

The hiring market may face a difficult year in 2025 as companies prepare for a new trade war.

ZipRecruiter stock price analysis

The daily chart shows that the ZIP share price has been in a steady downward trend this year. It recently crossed the important support level at $7.22, its lowest swing on August 7. It invalidated the double-bottom chart pattern, a popular bullish sign. 

ZipRecruiter stock price has remained below the 50-day and 200-day Exponential Moving Averages (EMA). Also, the MACD and the Relative Strength Index (RSI) have continued moving downwards. It is also below the descending trendline that connects the highest swing in July 2023. 

Therefore, the stock will likely continue falling as sellers target the crucial support level at $6.

The post As the ZipRecruiter stock price implodes, will it rebound in 2025? appeared first on Invezz

Keep Reading
Business

Sprout Social stock is down 77% from ATH: time to buy the dip?

Sprout Social stock price has remained under pressure this year as the company’s growth trajectory slowed. SPT was trading at $32.45, down by over 77.5% from its all-time high, bringing its valuation to about $1.86 billion. 

Good product, but sales growth is a concern

Sprout Social is a top software company used by companies like HP, Cintas, Atlassian, and Rackspace. Its service is used by over 31,000 customers globally. 

Its product lets companies post and manage their social media accounts like X, Facebook, LinkedIn, Pinterest, and TikTok. In addition to posting, the company provides these firms with analytical tools that lets them see and interpret their data. 

Sprout Social’s biggest challenge is that it operates in a highly competitive industry. Hootsuite is its biggest competitor, followed by firms like Sendible and Zoho Social. 

Its other top competition comes from social media platforms themselves since one can easily send and analyze posts without a subscription.

Sprout Social’s business has grown in the past few years, with its revenue moving from $102.7 in 2019 to over $333.6 million. Estimates are that its annual revenue will get to $405 million this year, followed by $464 million next year.

The most recent quarterly results showed that Sprout Social’s revenue rose by 20% in Q3 to $102.6 million. Analysts expect its fourth-quarter revenues to be $106.7 million, up by 14% from last year’s period. It will then make $110 million next year.

A key challenge that Sprout Social has faced is that of profitability. Its annual loss stood at over $66.4 million in 2023, up from $50.2 million in the previous year. The company’s trailing twelve-month loss was $67.1 million. 

Read more: Is it time to exit Sprout Social? KeyBanc downgrades and slashes target to $28

SPT’s valuation concerns

The biggest concern for Sprout Social is that its business will likely find it difficult to sign big customers in the future since most companies have a social media software. 

Sprout Social’s stock is also not cheap as it has a forward price-to-earnings ratio of 69.50, much higher than the sector median of 25. Its valuation metric is also much higher than that of other fast-growing companies like NVIDIA and Microsoft.

The best valuation metric to use for a software company like Sprout Social is known as the Rule of 40. This is an approach where one looks at a firm’s growth and profitability metrics. Ideally, a company is said to be fairly valued if the metric comes in at above 40.

In Sprout Social’s case, the company has a revenue growth of 26% and a forward – or estimated one of 22%. The company is not yet profitable; its net margin was minus 17%. By adding its revenue growth and margins, we can estimate that the rule of 40 metrics is just 5, meaning that the company largely focuses on growth at the expense of profitability.

Sprout Social stock price analysis

SPT stock by TradingView

The weekly chart shows that the SPT stock price has been in a strong downward trend after peaking at $145 in 2022. It has moved to $32, dropping its market cap from $8.7 billion to today’s $1.6 billion. 

Sprout Social’s stock has remained below the key support level at $38.31, its lowest level in May 2023 and May 2022. It even formed a break and retest pattern, a popular continuation sign.

Therefore, the SPT share price will likely continue falling as sellers target the next key support level at $25.30, its lowest level this year.

The post Sprout Social stock is down 77% from ATH: time to buy the dip? appeared first on Invezz

Keep Reading
Business

Will the falling Hims & Hers stock price recover in 2025?

Hims & Hers stock price has greatly performed this year as it continued to disrupt the healthcare industry. HIMS has jumped by almost 200% this year, while other companies in the industry like CVS Health and Walgreens Boots Alliance and CVS Health, plunged. So, will the stock have more upside in 2025?

HIMS stock fell after a key FDA ruling

One reason why the Hims & Hers stock price surged has been its entry into the weight loss industry, where it offers quality drugs at a lower cost. 

This business may be under pressure soon, which explains why the stock has crashed by more than 25% from its highest level this year. 

In a statement last week, the Food and Drug Administration (FDA) warned that it was concerned about many weight drugs being sold in the market. In particular, it expressed concerns about compounded drugs, which it said were not approved. 

The FDA noted that it had received adverse events related with compounded semaglutide and tripeptide. Therefore, it is likely that Hims & Hers business will be affected because the weight loss segment is one of its fastest-growing segments. 

The company is seeing strong growth

Hims & Hers stock price surged this year as its business continued doing well because of its large total addressable market. As we have written before, its top markets like weight loss, hair loss, anxiety, and sexual health have a large total addressable market. For example, a report by Oxford noted that over 25% of men in the United States had an erectile dysfunction problem.

Estimates are that millions of Americans have weight issues. According to the CDC, about 9.4% of all Americans had an obesity problem. Also, more people are now more comfortable buying these drugs online, which was not the case a few years ago.

These trends explain why the Hims stock price has done well in the past few years. Its annual revenue stood at just $82.6 million in 2019, making it a fairly small company. Recently, however, its revenue has soared, hitting over $872 million in 2023 and $1.2 billion in the trailing twelve months. 

The most recent results showed that the Hims & Hers revenue jumped by 77% YoY to over $401.6 million. Analysts expect that this growth is just starting, with the current quarter’s revenue rising by 90% to over $469 million. 

The average estimate is that Hims & Hers annual revenue will get to $1.45 billion this year, followed by $2.03 billion in 2026. This trend makes it one of the fastest-growing companies in the healthcare industry.

Hims & Hers is seeing profitable growth. The average estimate is that its EPS will be 22 cents in this quarter, up from $0.05 a year ago. Its annual EPS will move to 8 cents this year, followed by 93 cents in the following year. This growth will help the company justify its high valuation, with its market cap standing at over $5.7 billion today.

Hims & Hers stock price analysis

The daily chart shows that the HIMS share price peaked at $35 in November. As we predicted, it erased some of those gains after the FDA ruling.

The stock’s retreat has seen it retest the important support level at $25.75, its highest swing on June 17. This pattern is known as a break and retest, and is one of the most bullish continuation signs.

The stock has found support at the 50-day Exponential Moving Average. Therefore, there are odds that the stock will bounce back soon and retest the important resistance point at $35, the year-to-date high. A drop below the support at $22 will invalidate the bullish view.

The post Will the falling Hims & Hers stock price recover in 2025? appeared first on Invezz

Keep Reading
Business

Coursera stock price analysis: will this edtech giant rebound?

Coursera stock price has crashed to a near-record low as the company’s business growth decelerates amid an uptick in AI use. COUR was trading at $8.31, a few points above the record low of $6.26. 

Growth momentum easing

Coursera and other similar edtech companies like Udemy and Chegg are struggling as more customers turn to artificial intelligence tools to learn. 

Udemy’s stock has crashed by over 76% from its highest point this year, while Chegg has become a penny stock. 

Coursera’s business has showed signs of slowing down. The most recent results showed that the company’s revenue rose by just 6% to $176 million in the third quarter. Analysts expect that its revenue will be $176 million in the fourth quarter. 

If these revenue estimates are accurate, its annual revenue will be $691 million, a 8.8% increase from what it made last year. 

Analysts also expect that Coursera’s revenue growth will decelerate further in the next few years. For example, its revenue will be $737 million in 2025, a 6.6% increase. On the positive side, Coursera has a long history of beating analysts’ consensus on revenue and earnings.

The case for COUR stock

A contrarian case for the Coursera stock price can be made even as its growth slows. First, its business is seeing some growth across all its segments. The most recent numbers showed that its consumer segment had a revenue of $102.3 million, a 3% YoY growth during the quarter. This division lets customers watch video lectures for free and then pay a fee for the certificates.

Coursera’s enterprise division is growing faster as its revenue rose by 10% in the quarter. This is notable growth since the division has a segment margin of 70% compared to the consumer’s 54%. 

The last smaller division, degrees, also grew by 15% to $13.4 million during the quarter. While this is a small segment, it is also the most profitable since it has a segment margin of 100%.

The other important case for Coursera is that the fear that AI will disrupt its business is highly exaggerated. While platforms like ChatGPT and Claude are great platforms, they cannot replace the solutions offered by Coursera. For one, their platforms cannot offer the degrees that Coursera offers.

Coursera also benefits from partnering with some leading companies and universities. Some of its most notable partners are the Imperial College London, Stanford, Penn University, Google, and Duke. 

Coursera also has a strong balance sheet with over $719 million in cash and equivalents and over $821 million in current assets. Its current liabilities are $314 million, bringing its working capital at over $405 million. It also has no debt, meaning that it can survive the ongoing slowdown without needing to raise additional capital.

Coursera is also on a path to profitability. Analysts expect it to earn $0.3 per share this year and $0.34 in 2024. This means that its profit margin will continue expanding in the coming years, helping to justify its valuation.

Coursera stock price analysis

COUR stock chart by TradingView

The daily chart shows that the COUR share price has been pressured and moved sideways in the past few weeks. It has formed a double-bottom chart pattern at $6.26, where it failed to move below in July and November this year. A double-bottom is one of the most bullish chart patterns in the market.

Coursera stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA), which are about to form a bullish crossover. Therefore, a contrarian case for the company exist. If it works out, the next point to watch will be at $11.75, its highest point on July 26, about 42% above the current level.

The post Coursera stock price analysis: will this edtech giant rebound? appeared first on Invezz

Keep Reading
Stocks

Expensive Asana stock price could surge by 195% in 2025

Asana stock price has suffered a harsh reversal in the past few days as investors fade the December 5 earnings surge. ASAN shares retreated to $21.65, down by over 22% from the highest point this month. Is this SaaS stock a good one to invest in?

Asana’s is a leader in its business

Asana is a technology company offering thousands of companies global project management solutions. Some of its top clients include Danone, Spotify, and Gannett. 

According to Gartner, Asana is one of the industry leaders. Its top competitors include Smartsheet, Wrike, Monday, Airtable, Atlassian, and ClickUp. 

The collaboration industry has grown in the past few years as more companies have embraced remote work and technology. This means that the industry has a large total addressable market and strong competition.

Asana’s business has grown well in the past few years, with revenue jumping from over $142 million in 2019 to over $706 million in the trailing twelve months. This growth happened as the number of core clients spending $5,000 a year rose to 23,609.

Asana benefits from having thousands of customers and often experiencing low churn, meaning that its clients rarely move to competitors. The most recent results showed that its retention rate was about 98%, higher than most companies.

The challenge, however, is that Asana’s business is slowing as competition rises. Signing up new large customers is also becoming difficult because they already have their providers.

Asana’s slow growth and AI hopes

Recent results showed that Asana’s revenue rose by 10% to $183 million. Analysts expect that Asana’s fourth-quarter revenues will come in at $188 million, up by about 9.9% from last year. This growth will bring its total annual revenue to $723 million, up by 10.8% from a year earlier. 

Asana’s revenue will then rise by another 10% to $802.9 million in the next financial year. Its real numbers will likely be better than estimates because it has a long history of beating the consensus. Asana hopes that its AI solutions will help to supercharge its business trajectory. It has built AI Studio and Smart Workflows that are helping customers boost their productivity.

Profitability has been another challenge as the company has continued to lose money in the past few years. Its cumulative net loss in the last five financial years stood at about $1 billion. Fortunately, it is now reducing its losses, with its Q3 loss at $60 million. Analysts see Asana’s loss per share narrowing from 14 cents this year to just 0.01 cents next year.

There are concerns about Asana’s valuation. It has a market cap of over $4 billion and a rule of 40 metric of just 8%. This figure is calculated by adding the company’s profit margin and growth metric, and it is a sign that it prioritizes growth over profits.

Read more: Vista and Blackstone to acquire software maker Smartsheet in $8.4 billion deal

Asana stock price forecast

A closer look at Asana’s weekly chart shows that it closely resembles most altcoins. It formed a double-bottom chart pattern at $11.33 and a neckline at $26. A double-bottom pattern often leads to a strong bullish breakout. 

Therefore, while Asana stock is highly overvalued, it will likely stage a strong comeback soon, especially if it continues to report strong results. If this happens, the next point to watch in 2025 will be the 38.2% Fibonacci Retracement level at $62.37, which is about 195% above the current level.

The post Expensive Asana stock price could surge by 195% in 2025 appeared first on Invezz

Keep Reading