Why Udemy Stock Skyrocketed Today
Shares of online learning marketplace Udemy (NASDAQ: UDMY) skyrocketed on Friday after the company released strong financial results for the fourth quarter of 2024. As of 12:15 p.m. ET, Udemy stock was up a whopping 33%.
At first glance, investors seem to be overreacting with Udemy stock today. While it did beat expectations on the top and bottom lines, the numbers in isolation weren't necessarily inspiring. For revenue, Udemy generated $200 million, which was only up 5% year over year. Moreover, management only expects 2% growth at most, in 2025. That hardly seems worthy of a 33% stock price gain.
Diving deeper, Udemy stock is quite cheap in light of its surging profitability. Granted, it's measuring profitability with the metric of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which is an easier one.
Source Fool.com
