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8 Tech Stocks to Sell Now - 8 of 8

 
 

#8 - 2U (NASDAQ:TWOU)

2U (NASDAQ: TWOU) – 2U is a leader in enabling world-class digital education for many of the nation’s top universities. This puts it at the epicenter of the challenge these institutions face, namely how to provide an accredited degree program while helping students manage the increasing costs of higher education. 2U has promising growth potential in national and international markets. And the company has posted impressive earnings numbers in the first half of 2018. In May, the company reported a 42.4% increase in sales even as net income dipped to a loss of $14.9 million, largely due to absorbing the start-up costs of their new graduate program. However, the company did raise its expectations for the full-year sales and earnings and their stock saw double-digit growth after it was reported that they renewed their contracts with Washington University in St. Louis through 2029. Like many of the stocks we are listing, the question for 2U is the growth-dependent valuation that has them trading at approximately 13 times their expected sales for 2018. Investors are also concerned about the scalability of 2U’s offerings. Onboarding a new university requires a high degree of setup as well as content creation

About 2U

2U, Inc operates as an online education platform company in the United States and internationally. The company operates through two segments, Degree Program and Alternative Credential. The Degree Program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs. Read More 
Current Price
$0.00
Consensus Rating
Hold
Ratings Breakdown
0 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$30.00

 

Nobody is saying that the technology sector is floundering. Like the tide that causes all boats to rise, tech stocks are riding an impressive wave of a bull market that is now in its ninth year. Whatever your long-term outlook on the market is, corrections occur.

The recent spectacular drop in Facebook and Netflix should be a clear reminder that no stock is untouchable and in these times of rosy earnings reports and a surging stock market, stocks can, and will, fall. And when they do, it can set you up for enormous profits down the road if you do your due diligence.

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