10'000 Hours
Summary
- Coursera’s stock has declined by over 21% since last year, but I maintain a buy rating and believe it is undervalued.
- The company’s revenue growth has slowed down, but operating cash flow generation has improved.
- The delay in content launch and potential slowdown in the consumer segment are temporary issues that can be mitigated by Coursera’s focus on AI content.
Coursera (NYSE:COUR) is a company developing a global platform that offers online courses globally. I first covered COUR in May last year, when I gave the stock a buy rating due to my belief that its AI strategy could unlock margin expansion opportunities. It appears that my call was proven wrong today, as COUR is recently trading at $8.8, down over -21% since my coverage.
COUR’s journey over the past year has, in fact, been a rollercoaster ride. The stock actually soared to $21 in January this year, almost twice as much as the price during my first coverage. However, COUR’s steep -54% decline YTD has driven much of the underperformance that has brought the stock to the $8 price level today.
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