2U Stock Is An Undervalued Growth Opportunity


  • 2U’s share price is down 83% from its highs in February 2021.
  • The company’s revenue has grown at an incredible 22% over the same period.
  • The growth in the online education market is expected to act as a tailwind for the company.
  • 2U recently finalized the acquisition of edX, a leader in online degrees. Partners include leading universities such as Harvard, Berkeley and even MIT.
  • The company is undervalued both in my relative and intrinsic valuation models.

Student using laptop having online class with teacher

Prostock-Studio/iStock via Getty Images

2U (NASDAQ:TWOU) is the market leader in online education and degrees. They work with over 80 Universities, including top tier colleges such as Harvard, Cambridge and even MIT.

The company’s share price is down 83% from

Microsoft Hololens. Learning with VR

Microsoft Hololens. Learning with VR (Microsoft)

2U acquires EdX

2U acquires edX (2U investor Relations report)

2U Marketing Plan

2U Marketing Plan (2U investor relations)

2U vs Coursera Table

2U vs Coursera comparison Table (Created by author)

2U Stock analysis and Valuation Model

2U Stock analysis and Valuation Model (Created by author Ben Alaimo at Motivation 2 Invest YouTube)

2U stock analysis/Valuation Model

2U stock analysis/Valuation Model (Created by author)

Disclosure: I/we have a beneficial long position in the shares of TWOU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is not a recommendation to buy or sell any stock, or financial advice.

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