Online education companies may have been boosted by the effects of COVID-19 on home learning over the past 18 months, but sometimes investors miss the real lesson.
Collins added “As we’ve seen in recent IPOs, the reaction can be hit and miss. Coursera seized on the Covid splintering of online education and took advantage of the fires of the momentum on day 1. The stock opened around $40 but traded at $60 in its first week. This came after the company priced its shares at $33. almost double to even in mid-May. It’s fair to say that this one has been a roller coaster, but what I see is a series of lower highs and a bearish pattern yet again.”
Coursera came out of the gate strong, but Collins doesn’t see that kind of growth in the title’s future. In fact, the exact opposite. Collins sees Coursera as weak and grows weaker.
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“Several secondary indicators moved lower from the Full Stochastics indicator to the MACD to the parabolic stop-and-reverse (PSAR) indicator. The 21-day simple moving average (SMA) moved below the 50-day SMA. days.”
If the economy overwhelmingly turns to online education again, Collins thinks Coursera could rebound. The stock is far from its post-IPO high, however, and Collins may see it back to the low of 30 if circumstances don’t come to the company’s rescue.