Why 2U Stock Dropped 66% in July

Shares of 2U (NASDAQ: TWOU) plummeted 66% in July, according to data from S&P Global Market Intelligence, after the online-education platform specialist told investors it was fundamentally changing its growth trajectory.

In fact, virtually all of 2U's plunge last month came on the final day of July, which happened to be the first trading day after its second-quarter 2019 report hit the wires. But the report itself wasn't technically bad: Revenue climbed 39.1% year over year, to $135.5 million, translating to an adjusted net loss of $25.8 million, or $0.43 per share. By comparison, 2U's own guidance called for a narrower net loss of $0.35 to $0.36 per share on revenue closer to $125 million.

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