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Why is Coursera Inc (COUR) Stock down?
Coursera Inc (COUR) stock dropped by 10.32% due to an analyst's downgrade by Goldman Sachs' Eric Sheridan, which negatively affected investors' sentiment on this day. The downgrade was blamed for concerns in AI technology.
- Analyst Downgrade: Specifically, he downgraded Coursera's rating from Neutral to Sell and reduced the price target from $18 to $14. This new price target implied a potential 20% downside from the share price when the downgrade was announced.
- AI Concerns: Sheridan downgraded stocks within the education technology sector, citing "artificial intelligence headwinds" as the driving factor. Sheridan further elaborated on his concerns, stating, "There are still open-ended questions around how the edTech landscape will evolve with key questions being how the rise of generative AI may alter learner behavior and ultimately user growth for many edTech companies, as well as what the balance of investments (licensing fee, compute costs) and cost savings (on the content side) will be."
- Market Reaction: The market's reaction to this news indicates that while it considers the information meaningful, it does not perceive it as a change that would fundamentally alter its perception of Coursera's business.
Shares of Coursera fell 15.65% today, from $15.65 to $13.20. COUR, as well as other stocks, experinced an obvious decline in price today, because investors reacted to robust January PPI data (0.7% increase), better than expected jobless claims (194,000), and heard from Fed officials, Mester considering a 0.50% rate hike, and Bullard pushing for more hikes in March towards a 5.375% federal funds rate. Stocks ended higher in response to the positive economic data.
Coursera (COUR) shares slid 9.08% from $14.75 to $13.41, as the online education company reported disappointing Q4 earnings, falling short of profit estimates, and issued a lackluster Q1 outlook. Despite strong revenue growth, persistent losses and lower-than-expected guidance prompted a stock downgrade by Cantor Fitzgerald.
https://www.fool.com/investing/2023/02/10/why-coursera-stock-was-tumbling-today/
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