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Youdao, Inc. (DAO)

Consumer Defensive | Education & Training Services | Hangzhou, China | NYSE
16.65 USD +0.21 (1.277%) ⇧ (Aug. 28, 2026, 4 p.m. EDT)
After hours: 16.65

Short-term:★★⯪☆☆Long-term:★☆☆☆☆Dividends:☆☆☆☆☆
Hot Take | Aug. 22, 2026, 2:57 a.m. EDT

The investment case here is fraught with contradictions between the company's operational recovery and its precarious financial structure. Fundamentally, the business has staged a dramatic rebound, surging 171% in the most recent fiscal year to turn a five-year decline into a net gain. However, this resurgence is being weighed down by a massive debt burden that dwarfs its cash reserves, resulting in a negative book value and a trailing P/E of 91. This leverage creates a fragile balance sheet where any stumble in revenue growth could trigger a solvency crisis, capping the long-term potential regardless of operational success. Consequently, the long-term outlook remains deeply bearish due to these structural risks. In the short term, the stock is showing signs of life, trading above its 50-day moving average and gaining ground recently. Yet, the statistical forecasting models offer little conviction, viewing the move as noise rather than a trend. Options activity confirms this ambivalence: traders are hedging against a drop while betting on a moderate rise, but neither side is committing to a massive directional move. The consensus target price sits well below the current trading level, highlighting the disconnect between the recent price action and the perceived intrinsic value. Until the debt situation stabilizes or revenue growth proves sustainable without relying on one-time gains, this remains a speculative play rather than a core holding.

Model Selection — Backtest MAE (log-scale, lower is better)
ModelMAE
AutoTheta ✓0.109127
AutoARIMA0.124220
AutoETS0.124853
MSTL0.128276

Forecast horizon: 45 days | Selected: AutoTheta

Forecast Reliability
Score 34%
H-stat 36.88
Ljung-Box p 0.000
Jarque-Bera p 0.153
Excess Kurtosis -1.24
Attribute Value
Sector Consumer Defensive
Revenue per Share 50.653
Market Cap 2,008,566,528
Trailing P/E 83.25
Forward P/E 38.32
Beta 0.53
Profit Margins 2.67%
Website https://www.youdao.com

As of Aug. 22, 2026, 2:57 a.m. EDT: Speculators are positioning for a volatile range-bound outcome rather than a directional breakout. The near-term expiration shows heavy open interest in out-of-the-money calls at $22.50 alongside significant in-the-money volume, suggesting bets on a rally to resistance levels. Conversely, put writers are heavily exposed at lower strikes ($5.00, $12.50), indicating a belief that the stock will not crash significantly despite its weakness. Implied volatility is elevated relative to the underlying price, reflecting uncertainty about whether the recent recovery can sustain itself against the heavy debt load.


Info Dump

Attribute Value
52 Week Change 0.9455621
Address1 No. 399, Wangshang Road
Address2 Binjiang District
All Time High 47.7
All Time Low 2.86
Ask 17.1
Ask Size 100
Average Analyst Rating 1.4 - Strong Buy
Average Daily Volume10 Day 85,150
Average Daily Volume3 Month 74,501
Average Volume 74,501
Average Volume10Days 85,150
Beta 0.529
Bid 16.05
Bid Size 200
Book Value -2.30745
City Hangzhou
Country China
Crypto Tradeable 0
Currency USD
Current Price 16.65
Current Ratio 0.584
Custom Price Alert Confidence HIGH
Date Short Interest 1,786,665,600
Day High 16.975
Day Low 16.275
Display Name Youdao
Earnings Call Timestamp End 1,787,220,000
Earnings Call Timestamp Start 1,787,220,000
Earnings Timestamp 1,787,229,000
Earnings Timestamp End 1,795,091,400
Earnings Timestamp Start 1,795,091,400
Ebitda 278,150,496
Ebitda Margins 0.0463
Enterprise To Ebitda 10.375
Enterprise To Revenue 0.48
Enterprise Value 2,885,680,128
Eps Current Year 1.97644
Eps Forward 0.4345036
Eps Trailing Twelve Months 0.2
Esg Populated 0
Exchange NYQ
Exchange Data Delayed By 0
Exchange Timezone Name America/New_York
Exchange Timezone Short Name EDT
Fifty Day Average 15.0014
Fifty Day Average Change 1.6485996
Fifty Day Average Change Percent 0.109896384
Fifty Two Week Change Percent 94.55621
Fifty Two Week High 18.94
Fifty Two Week High Change -2.290001
Fifty Two Week High Change Percent -0.12090818
Fifty Two Week Low 8.3
Fifty Two Week Low Change 8.349999
Fifty Two Week Low Change Percent 1.006024
Fifty Two Week Range 8.3 - 18.94
Financial Currency CNY
First Trade Date Milliseconds 1,572,010,200,000
Float Shares 27,164,531
Forward Eps 0.4345036
Forward P E 38.31959
Full Exchange Name NYSE
Full Time Employees 3,595
Fullday Change 0.209999
Fullday Change Percent 1.27737
Fullday Price 16.65
Gmt Off Set Milliseconds -14,400,000
Gross Margins 0.45146
Gross Profits 2,712,409,088
Has Pre Post Market Data 1
Held Percent Insiders 0.13427
Held Percent Institutions 0.27865
Implied Shares Outstanding 120,634,631
Industry Education & Training Services
Industry Disp Education & Training Services
Industry Key education-training-services
Is Earnings Date Estimate 0
Language en-US
Last Fiscal Year End 1,767,139,200
Long Business Summary Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in the People's Republic of China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The Learning Services segment offers digital content services, which provides interactive learning features, such as Youdao Lingshi; STEAM courses, including Youdao iCode operated by Youdao Premium Courses; and adult courses comprising China University MOOC. The Smart Devices segment develops and offers smart devices, such as Youdao Dictionary Pen, Youdao Tutoring Pen, and Youdao Smart Learning Terminal. The Online Marketing Services Segment provides performance-based advertising, and global marketing and promotion services. It also offers Youdao Dictionary, a language app; other dictionary and translation tools; and AI-based learning tools, including Hi Echo, Mr. P AI Tutor and Scholar AI by Confucius LLM. In addition, the company licenses technologies and services through Youdao Smart Cloud. It provides learning content, applications, and solutions, which cover topics and target people from age groups through its websites and mobile applications. Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. operates as a subsidiary of NetEase, Inc.
Long Name Youdao, Inc.
Market us_market
Market Cap 2,008,566,528
Market State CLOSED
Max Age 86,400
Message Board Id finmb_638931268
Most Recent Quarter 1,782,777,600
Net Income To Common 160,730,000
Next Fiscal Year End 1,798,675,200
Non Diluted Market Cap 1,983,233,333
Number Of Analyst Opinions 7
Open 16.29
Operating Margins 0.07604
Payout Ratio 0.0
Phone 86 57 1898 52163
Post Market Change 0.0
Post Market Change Percent 0.0
Post Market Price 16.65
Post Market Time 1,787,959,806
Previous Close 16.44
Price Eps Current Year 8.424237
Price Hint 2
Price To Book -7.2157574
Price To Sales Trailing12 Months 0.33430985
Profit Margins 0.02675
Quick Ratio 0.496
Quote Source Name Nasdaq Real Time Price
Quote Type EQUITY
Recommendation Key strong_buy
Recommendation Mean 1.375
Region US
Regular Market Change 0.209999
Regular Market Change Percent 1.27737
Regular Market Day High 16.975
Regular Market Day Low 16.275
Regular Market Day Range 16.275 - 16.975
Regular Market Open 16.29
Regular Market Previous Close 16.44
Regular Market Price 16.65
Regular Market Time 1,787,947,203
Regular Market Volume 65,711
Return On Assets 0.084759995
Revenue Growth 0.035
Revenue Per Share 50.653
Sand P52 Week Change 0.20504117
Sector Consumer Defensive
Sector Disp Consumer Defensive
Sector Key consumer-defensive
Shares Outstanding 32,646,271
Shares Percent Shares Out 0.006
Shares Short 719,956
Shares Short Previous Month Date 1,784,073,600
Shares Short Prior Month 879,805
Short Name Youdao, Inc.
Short Percent Of Float 0.0318
Short Ratio 15.61
Source Interval 15
Symbol DAO
Target High Price 24.165722
Target Low Price 4.1902747
Target Mean Price 15.943999
Target Median Price 14.088947
Total Cash 844,472,000
Total Cash Per Share 7.102
Total Debt 1,712,446,976
Total Revenue 6,008,098,816
Tradeable 0
Trailing Annual Dividend Rate 0.0
Trailing Annual Dividend Yield 0.0
Trailing Eps 0.2
Trailing P E 83.25
Trailing Peg Ratio None
Triggerable 1
Two Hundred Day Average 11.62195
Two Hundred Day Average Change 5.0280495
Two Hundred Day Average Change Percent 0.43263388
Type Disp Equity
Volume 65,711
Website https://www.youdao.com
Zip 310,051