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Coursera (NYSE:COUR) shares crashed 35% on Thursday as investment firm Stifel downgraded the online course software company after it issued a weak second-quarter and guidance.
Analyst Scott Devitt lowered the firm's rating on Coursera (COUR) shares to hold from buy and cut the price target nearly in half to $14, noting that while the long-term outlook is still "appealing," there is little going right for the company in the interim.
"...[W]e see few catalysts as the company works through a period of slower growth, which management primarily attributes to macro weakness and headwinds impacting enrollments," Devitt wrote in a note to clients.
"We view the stock as a 'show me' story from here as we wait for evidence of reaccelerating growth and more meaningful progress on the path to profits," Devitt added.
Coursera (COUR) lost an adjusted 34 cents per share on $124.75M in revenue during the quarter, compared to estimates of a loss of 31 cents per share and $130.9M in sales.
For the full-year, Coursera (COUR) now expects sales to be between $509M and $515M, compared to a previous outlook of $538M to $546M.
On the earnings call, Coursera (COUR) CEO Jeff Maggioncalda said the company's consumer and degrees segments were especially weak.
Analysts have been mixed on Coursera (COUR). It had an average rating of HOLD from Seeking Alpha authors, while Wall Street analysts rate it a STRONG BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates COUR a HOLD.