TWOU

2U Inc

TMT


Presented:05/21/2020
Price:$36.79
Cap:$2.35B
Current Price:$1.58
Cap:$0.00B

Presented

Date05/21/2020
Price$36.79
Market Cap$2.35B
Ent Value$1.52B
P/E RatioN/A
Book Value$10.30
Div Yield0%
Shares O/S63.96M
Ave Daily Vol1,930,280
Short Int18.34%

Current

Price$1.58
Market Cap$0.00B
2U, Inc. engages in the provision of education technology for nonprofit colleges and universities. It operates through the following segments: Graduate Program and Alternative Credential. The Graduate Program segment provides technology and services to nonprofit colleges and universities to enable the online delivery of degree programs. The Alternative Credential segment provides premium online short courses and technical, skills-based boot camps through relationships with nonprofit colleges and universities. The company was founded by Christopher J. Paucek on April 2, 2008 and is headquartered in Lanham, MD.

Publicly traded companies mentioned herein: 2U Inc (TWOU), Zoom Video Communications Inc (ZM)

Highlights

The presenter remains long shares of 2U Inc (TWOU) despite the stock’s recent move from ~$16/share to ~$35/share, believing the business is materially better off and has more tailwinds than it did prior to the outbreak of COVID-19. TWOU IPO’d in March 2014 and has traded as high as ~$98/share or 10x revenue. However, since reaching those highs, the company experienced a number of issues with some of its online programs at major universities, which over time caused shares to re-rate to ~$15/share. Applying a 4x revenue multiple on 2022 estimates, the presenter has a price target of ~$55/share or ~57% upside from the current levels.

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Idea Discussion

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