Why Ed-Tech Company 2U Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
2U, Inc. (NASDAQ:TWOU) shares dropped in premarket trading after reporting Q4 earnings and revenue that missed Wall Street estimates. The company's adjusted EPS was 48 cents, below the expected 64 cents, and revenue was $255.66 million, missing the forecast of $281.438 million. Despite an 8% revenue increase, the Alternative Credential Segment saw a 7% decrease. The company provided a weaker than expected outlook for Q1 and the full year 2024, projecting lower revenues and a net loss.

February 13, 2024 | 1:31 pm
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2U, Inc. shares fell significantly due to Q4 earnings and revenue missing estimates, alongside a weaker outlook for Q1 and FY2024.
The significant drop in 2U, Inc.'s share price is directly related to its Q4 earnings and revenue missing Wall Street estimates, combined with a weaker than expected outlook for the upcoming quarter and full year. This news negatively impacts investor sentiment and expectations, leading to a decrease in stock price.
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