Many school districts, families with children, and college students are faced with a dilemma at the start of the 2020-21 school year: risk going back to the classroom or give it a go via video conferencing and remote learning. As a result, many remote education stocks (and of course Zoom Video Communications) have been off to the races since the market meltdown in March.
That's where online education service outfit 2U (NASDAQ: TWOU) comes in. Shares are up more than 200% from their March lows on optimism this small company (with a current market cap of just $2.6 billion) could be a big part of the future of education. But before you buy, you should be aware of what could go wrong.
2U -- which creates and provides online curriculums, undergraduate and graduate programs, professional certificates, and non-accredited studies -- reported a 39% increase in revenue to $358 million through the first half of 2020. That included a 35% increase in the quarter ended June 30, although only 18% organic growth was reported with the balance coming from the $750 million acquisition of Trilogy Education last year.
Source Fool.com