Capital Market Bullish on Youdao's (DAO.US) AI Transformation, Shares Surge Over 10% in a Single Day

Stock News12-01

In the latest trading session on the U.S. East Coast, Youdao (DAO.US) saw its stock price surge sharply, closing up 10.66% at $10.07 per share, bringing its total market capitalization to $1.204 billion.

The rally followed the company's release of its unaudited financial results for Q3 2025 on November 20. The report highlighted robust growth resilience, with Youdao achieving profitability for five consecutive quarters under its "AI-native" strategy. Cumulative operating profit for the first three quarters of 2025 surged nearly 150% year-over-year.

Key financial metrics for Q3 2025 included net revenue of RMB 1.63 billion, up 3.6% YoY, and operating profit of RMB 28.27 million. Additionally, operating cash outflow narrowed by 31.4% YoY, reflecting improved financial health and laying a solid foundation for sustained growth.

Notably, both net revenue from online marketing services and AI subscription sales hit record highs, validating the success of Youdao’s AI-driven approach and demonstrating the technology’s deep integration into its product and service ecosystem.

CEO Zhou Feng expressed confidence in meeting the company’s 2025 financial targets, emphasizing expectations for "rapid operating profit improvement and annual operating cash flow breakeven." This optimism has bolstered market confidence in Youdao’s long-term profitability in the AI sector.

Analyst sentiment echoes this bullish outlook. Huatai Securities reiterated a "Buy" rating with a $12.46 target price, while CICC maintained its "Outperform" rating and set a $13 target, signaling substantial upside potential from current levels.

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The report highlighted robust growth resilience, with Youdao achieving profitability for five consecutive quarters under its \"AI-native\" strategy. Cumulative operating profit for the first three quarters of 2025 surged nearly 150% year-over-year.</p>\n<p>Key financial metrics for Q3 2025 included net revenue of RMB 1.63 billion, up 3.6% YoY, and operating profit of RMB 28.27 million. 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Huatai Securities reiterated a \"Buy\" rating with a $12.46 target price, while CICC maintained its \"Outperform\" rating and set a $13 target, signaling substantial upside potential from current levels.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4506","symbol_name":"内地教育股","start_time":0,"source_url":"","article_id":"1183257971","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1183257971","pubTimestamp":1764575453,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"In the latest trading session on the U.S. East Coast, Youdao (DAO.US) saw its stock price surge sharply, closing up 10.66% at $10.07 per share, bringing its total market capitalization to $1.204...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4506":"内地教育股","BK4510":"在线教育","BK4204":"教育服务","DAO":"有道"},"translate_title":"资本市场看好有道(DAO.US)AI转型股价单日大涨超10%","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DAO":1},"content_text":"In the latest trading session on the U.S. East Coast, Youdao (DAO.US) saw its stock price surge sharply, closing up 10.66% at $10.07 per share, bringing its total market capitalization to $1.204 billion.\nThe rally followed the company's release of its unaudited financial results for Q3 2025 on November 20. 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