Gaotu Stock Story

GOTU
 Stock
  

USD 1.68  0.01  0.60%   

As many rational traders are trying to avoid consumer defensive space, it makes sense to review Gaotu Techedu a little further and understand how it stands against ITT Educational and other similar entities. We are going to break down some of the competitive aspects of both Gaotu and ESINQ.
Published over three months ago
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Gaotu Techedu Sentiment by News Outlets

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Gaotu Techedu Historical Investor Sentiment

Investor biases related to Gaotu Techedu's public news can be used to forecast risks associated with investment in Gaotu. The trend in average sentiment can be used to explain how an investor holding Gaotu can time the market purely based on public headlines and social activities around Gaotu Techedu. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Gaotu Techedu's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Gaotu Techedu's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Gaotu Techedu's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Gaotu Techedu.

Gaotu Techedu Twitter Pulse

Investors have realized that leveraging social media to get the fastest information affecting stock prices isn't a theory anymore, it is a reality, and Twitter offers a platform that can outpace even the most trustworthy news aggregators. The influence of social media outlets on stock markets and stock prices of entities such as Gaotu Techedu has been proven in recent years. We extract public sentiment from Twitter posts that could be utilized to determine whether Gaotu Techedu's prices will increase or decrease.
Twitter's metrics such as likes, followers, and engagement can be good indicators of the reliance and probability of reaction to a specific tweet regarding Gaotu Techedu. Our Twitter sentiment analysis of Gaotu Stock helps investors make informed decisions by leveraging the power of the community. It is a perfect supplementary tool for any beginner or an experienced trader.

Is ESINQ more volatile than Gaotu Techedu (NYSE:GOTU)?

By analyzing existing basic indicators between Gaotu Techedu and ESINQ, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ESINQ with a short position in Gaotu Techedu. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Gaotu is to check how much profit was generated for every dollar of assets it reports. Gaotu Techedu retains a negative application of resources of -38.58 (percent), losing $0.39 for each dollar of resources held by the firm. Inadequate asset utilization attests that the company is being less effective with each dollar of resources it retains. Simply put, asset utilization of Gaotu Techedu shows how discouraging it operates for each dollar spent on its resources.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Gaotu or Starbucks is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Gaotu Techedu's Liquidity

Gaotu Techedu financial leverage refers to using borrowed capital as a funding source to finance Gaotu Techedu ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gaotu Techedu financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Gaotu Techedu's total debt and its cash.

Correlation Between Gaotu and Starbucks Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Gaotu Techedu together with similar or unrelated positions with a negative correlation. For example, you can also add Starbucks Corp to your portfolio. If Starbucks Corp is not perfectly correlated to Gaotu Techedu it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Gaotu Techedu for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between GOTU and SBUX for more information.

Note

Are you currently holding both Gaotu Techedu and Starbucks Corp in your portfolio?
Please note if you are using this as a pair-trade strategy between Gaotu Techedu and Starbucks Corp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Detailed Perspective On Gaotu Techedu

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Gaotu Techedu revenue. Based on the latest financial disclosure, Gaotu Techedu reported 8.35 B of revenue. This is 43.79% lower than that of the Consumer Defensive sector and significantly higher than that of the Education & Training Services industry. The revenue for all United States stocks is 11.5% higher than that of Gaotu Techedu. As for ITT Educational we see revenue of 773.44 M, which is 3.41% lower than that of the Education & Training Services

Gaotu8.35 Billion
Sector800.78 Million
ESINQ773.44 Million
8.3 B
Gaotu
Sector
ESINQ

Chances of Gaotu Techedu private investors to go mental

Skewness is down to 1.63. It may call for a possible volatility drop. Gaotu Techedu is displaying above-average volatility over the selected time horizon. Investors should scrutinize Gaotu Techedu independently to ensure intended market timing strategies are aligned with expectations about Gaotu Techedu volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gaotu Techedu's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gaotu Techedu's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Gaotu Techedu Implied Volatility

Gaotu Techedu's implied volatility exposes the market's sentiment of Gaotu Techedu stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Gaotu Techedu's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Gaotu Techedu stock will not fluctuate a lot when Gaotu Techedu's options are near their expiration.

Our Bottom Line On Gaotu Techedu

Whereas some other entities in the education & training services industry are either recovering or due for a correction, Gaotu may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Gaotu nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gaotu Techedu.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Gaotu Techedu. Please refer to our Terms of Use for any information regarding our disclosure principles.

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