Coursera (COUR) - ★★★★
Ranked #31 in Q3 2024 SMID Rankings
Coursera (COUR) shares soared an impressive 56% during intraday trading on Friday, following the company's release of its second-quarter results that significantly surpassed analysts' expectations.
On Thursday, Coursera reported non-GAAP earnings of $0.09 per diluted share for Q2, a substantial improvement from breakeven results in the same period last year. This performance far exceeded the $0.02 per share consensus estimate. The company's revenue for the quarter ended June 30 reached $170.3 million, up from $153.7 million in the previous year.
This stellar performance validates our bullish outlook on Coursera, which we communicated to our subscribers on July 8th when the stock was trading at $7.20. At that time, we assigned Coursera a four-star rating with a positive intermediate-term outlook and set a price target of $11 over the next year, representing a 52% upside potential.
The market's reaction to Coursera's Q2 results has propelled the stock well beyond our initial expectations. Investors who acted on our recommendation have seen their positions appreciate significantly in a short period.
Options traders who took bullish positions have also reaped substantial rewards. For instance, the November 15, 2024 $10.00 strike price call option, which was trading at $0.30 ($30) per contract at the time of our note earlier this month, has now surged to $2.10 ($210) per contract. This represents an extraordinary gain of over 600% in just a few weeks.
This dramatic price movement underscores the potential for significant returns when thorough analysis aligns with strong company performance. It also highlights the importance of staying informed about promising investment opportunities in the dynamic education technology sector.
As always, investors should consider their risk tolerance and conduct their own due diligence before making investment decisions. While Coursera's recent performance is impressive, it's crucial to monitor the company's future results and market conditions for sustained growth.
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The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice. Any investment decisions made based on the information in this report are solely the responsibility of the recipient. We do not accept any liability for any direct, indirect, or consequential loss arising from any use of this report or its contents.
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