💰Bet on the Infinite Future of Educational AI Stocks: DAO, DUOL, ASMT
Breakthrough: The Nasdaq has broken through the 20,000-point mark, as leading tech stocks continue to roar.
Breakthrough+: AI-driven education companies are also seeing a noticeable rise in their stock prices.
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Market recap
The $.IXIC(.IXIC)$ surged by 1.77%, breaking the 20,000-point mark for the first time, with $Tesla Motors(TSLA)$ , $Alphabet(GOOG)$ , $Amazon.com(AMZN)$ , $Meta Platforms, Inc.(META)$ , and $Netflix(NFLX)$ all reaching record highs.
Rate Cut: The U.S. CPI for November rose by 2.7% year-over-year and 0.3% month-over-month, marking the largest increase in seven months. Following the data release, a 25-basis point rate cut by the Federal Reserve in December is almost fully priced-in.
Virtual Assets: Bitcoin has regained the $100,000 level, leading to a collective surge in cryptocurrency-related stocks. MicroStrategy rose nearly 9%, Bit Digital increased by over 4%, and Coinbase climbed close to 4%.
The era of educational AI
Generative AI is profoundly shaping our everyday educational experiences in classrooms and in decision-making institutions. As education technology companies undergo transformation, there's a strategic pivot towards AI-enhanced education. In November, $Alphabet(GOOG)$ also launched its educational AI product, Learn About.
1. NetEase $Youdao(DAO)$ :
Driven by its "AI + Education" strategy, the company has achieved another breakthrough in commercializing AI, resulting in robust performance growth, improved business health, and increased operational efficiency.
In Q3, NetEase Youdao's total revenue reached 1.57 billion RMB, a 2.19% year-over-year increase, marking a historic high; net profit was 86 million RMB, compared to a net loss of 103 million RMB in the same period of 2023.
AI has reversed previous years' trend of declining user engagement with new app trials. As AI technology continues to mature, NetEase Youdao's app subscription services have also seen significant growth. In Q3, the sales of NetEase Youdao's AI subscription services approached 70 million RMB, representing a year-over-year growth of over 150%.
2.$Duolingo, Inc.(DUOL)$ :
Surpassing expectations in Q3, Duolingo has revised its full-year revenue and performance guidance upwards.
Following the release of its AI-driven conversation feature, Duolingo Max, the platform has seen a significant rise in user engagement, indicating promising growth potential from increased average revenue per user and user base expansion.
In Q3, the company witnessed continued user growth, with 8.6 million paid subscribers, a 47% increase, and 37.2 million daily active users, up by 54%. As the world's largest online language learning platform, Duolingo's performance is being driven by the increased reach of Duolingo Max and a growing user base.
3. $Amesite Inc.(AMST)$
Amesite Inc. has reached a new 52-week high, hitting $4.47, signaling a significant rebound for this tech-based learning solution provider.
Amesite, an AI-driven platform and course designer, offers online products in the U.S., leveraging machine learning to provide learners with large-scale customized experiences.
Although the company has yet to achieve profitability, analysts expect revenue growth to exceed 200% this fiscal year.
Day trade or swing trade?
To become a consistently profitable day trader, education and training are essential. Unlike day trading, swing trading involves holding positions in stocks or other investments for a period ranging from a day to several weeks or longer. Generally, most traders engage in both day trading and swing trading.
Exiting in batches tends to be more effective in sensational sectors. These price movements might take a long time to complete, and you want your position's price to keep rising. Gradually exiting from positions that continue to rise is a solid strategy, potentially leading to greater profits from a trade. For swing trading, if a trade goes as expected, plan to exit profitably. If the stock shows strong upward momentum, consider exiting in stages, securing a portion of the profits (such as 50%), and then selling another quarter as prices rise further, and so on.
Social media has become a formidable force in the market. Actively using platforms like Reddit and X to find trading ideas can provide valuable insights into which sectors might become popular and where capital might flow overall. Additionally, joining communities like Telegram groups can be beneficial. The dynamic discussions can offer real-time insights into stocks or price trends, and engaging with experienced users within these groups can enhance the value of groupchats.
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It's amazing to see the $.IXIC(.IXIC)$ break through and these educational AI stocks performing well. I wonder if the rate cut will have a more significant impact on their growth.
The 3 stocks marked in this article are really in good trend. $Youdao(DAO)$ , $Duolingo, Inc.(DUOL)$ $Amesite Inc.(AMST)$ .
Combining education and AI seems can be a new trend. Waiting for their following performance.