Why GSX Techedu Is Tumbling 33% Today

Shares of GSX Techedu (NYSE: GSX) were crashing hard heading into midday trading Thursday, with shares of the Chinese remote-learning company down 33% after Goldman Sachs (NYSE: GS) analyst Christine Cho downgraded the stock to sell.

While the analyst said it was time to get out of the stock because its valuation "looks stretched," she did raise her price target to $70 per share, up from $61, though the stock currently trades around $95.

She said GSX has benefited this year from greater demand for online tutoring in China due to in-person tutoring being suspended as cases of COVID-19 increase.

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Source Fool.com