2U: This May Go To Zero

Feb. 10, 2022 4:35 PM ET2U, Inc. (TWOU)44 Comments
Gary Alexander profile picture
Gary Alexander


  • 2U suffered its worst quarterly earnings on record, dropping nearly 40% in a single day as a result.
  • Revenue growth has been decelerating over the past three quarters.
  • In addition to that, full course enrollments in 2U's degree programs are down y/y.
  • At the same time, 2U burns significant cash, and its balance sheet is already loaded with debt.
  • Looking for a helping hand in the market? Members of Daily Tech Download get exclusive ideas and guidance to navigate any climate. Learn More »

Group of unrecognisable international students having online meeting

Drazen_/E+ via Getty Images

Widespread growth stock corrections are also a fantastic time that over-hyped, low-quality stocks get weeded out of investors' favor, and I count 2U (NASDAQ:TWOU) squarely in this bucket. 2U, which describes itself as an educational technology company, but

2U price
Data by YCharts

2U Q4 revenue trends

2U Q4 revenue trends (2U Q4 earnings deck)

2U Q4 enrollments

2U Q4 enrollments (2U Q4 earnings deck)


2U Q4 FCF (2U Q4 earnings deck)

For a live pulse of how tech stock valuations are moving, as well as exclusive in-depth ideas and direct access to Gary Alexander, subscribe to the Daily Tech DownloadHighly curated focus list has consistently netted winning trades of 40%+.

This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (44)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.