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2U: This Business Will Not Stand The Test Of Time

Dec. 10, 2022 5:13 AM ET2U, Inc. (TWOU)2 Comments
Gary Alexander profile picture
Gary Alexander


  • Shares of 2U have collapsed nearly 70% this year due to deterioration of business fundamentals.
  • Enrollments in 2U's full degree program are declining, only partially offset by its unprofitable alternative credential program.
  • The company is saddled with nearly $1 billion of net debt.
  • It has cut opex, but primarily in sales and marketing, which will hurt its growth prospects.

University Students Studying Together In The Library

miniseries/E+ via Getty Images

I continue to hold the opinion that difficult macroeconomic times flush out the bad businesses and separate them from the good. In a bull market, a rising tide lifts all boats: but in today's environment, investors must be especially careful

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.

Analyst’s 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.

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Comments (2)

03 Feb. 2023
Great call Gary
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