Youdao (DAO) Stock Overview
An internet technology company, provides online services in the fields of content, community, communication, and commerce in the People’s Republic of China. More details
| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 4/6 |
| Past Performance | 4/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
DAO Community Fair Values
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Analyst Price Targets
Youdao, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$12.00 |
| 52 Week High | US$12.96 |
| 52 Week Low | US$8.00 |
| Beta | 0.57 |
| 1 Month Change | 25.39% |
| 3 Month Change | 21.33% |
| 1 Year Change | 35.14% |
| 3 Year Change | 89.57% |
| 5 Year Change | -39.02% |
| Change since IPO | -4.00% |
Recent News & Updates
Narrative Update • May 03
DAO: Citi Upgrade And Completed Buyback Will Support Future Repricing Potential
Analysts have adjusted their price target for Youdao to $14.93, reflecting updated assumptions on discount rate, revenue growth, profit margin, and future P/E, with recent research citing a more constructive view on the business. Analyst Commentary Recent research has taken a more constructive stance on Youdao, with bullish analysts pointing to factors that they see as supportive of the updated US$14.93 price target.Narrative Update • Apr 19
DAO: Citi Upgrade And Completed Buyback Will Support Future Repricing Potential
Analysts have adjusted their price target on Youdao to $14.93 per share. The change is framed around updated assumptions for revenue growth, profit margins and future P/E, and is supported by recent research that includes a Citi upgrade highlighting the company’s prospects.Narrative Update • Apr 04
DAO: Citi Upgrade And Completed Buyback Will Support Future Upside Potential
Analysts have trimmed their price target on Youdao from about $16.59 to about $14.93, citing updated views on discount rates, revenue growth, profit margins and future P/E assumptions reflected in recent research. Analyst Commentary Recent research commentary frames the trimmed price target for Youdao within a still supportive backdrop, with some readers likely to focus on where the more optimistic voices see potential upside.
Narrative Update • Mar 21
DAO: Citi Upgrade Will Expose Fragile Profitability Assumptions Going Forward
Analysts raised their price target on Youdao to $5.72 from $5.72, citing updated assumptions around revenue growth, profit margins and a slightly lower discount rate following recent research, including the latest upgrade at Citi. Analyst Commentary Citi highlighted updated assumptions around revenue, margins and discount rate in its recent work on Youdao, but not all commentary in the market is uniformly optimistic.Recent updates
Narrative Update • May 03
DAO: Citi Upgrade And Completed Buyback Will Support Future Repricing Potential
Analysts have adjusted their price target for Youdao to $14.93, reflecting updated assumptions on discount rate, revenue growth, profit margin, and future P/E, with recent research citing a more constructive view on the business. Analyst Commentary Recent research has taken a more constructive stance on Youdao, with bullish analysts pointing to factors that they see as supportive of the updated US$14.93 price target.Narrative Update • Apr 19
DAO: Citi Upgrade And Completed Buyback Will Support Future Repricing Potential
Analysts have adjusted their price target on Youdao to $14.93 per share. The change is framed around updated assumptions for revenue growth, profit margins and future P/E, and is supported by recent research that includes a Citi upgrade highlighting the company’s prospects.Narrative Update • Apr 04
DAO: Citi Upgrade And Completed Buyback Will Support Future Upside Potential
Analysts have trimmed their price target on Youdao from about $16.59 to about $14.93, citing updated views on discount rates, revenue growth, profit margins and future P/E assumptions reflected in recent research. Analyst Commentary Recent research commentary frames the trimmed price target for Youdao within a still supportive backdrop, with some readers likely to focus on where the more optimistic voices see potential upside.Narrative Update • Mar 21
DAO: Citi Upgrade Will Expose Fragile Profitability Assumptions Going Forward
Analysts raised their price target on Youdao to $5.72 from $5.72, citing updated assumptions around revenue growth, profit margins and a slightly lower discount rate following recent research, including the latest upgrade at Citi. Analyst Commentary Citi highlighted updated assumptions around revenue, margins and discount rate in its recent work on Youdao, but not all commentary in the market is uniformly optimistic.Narrative Update • Mar 07
DAO: Compressed P/E And Fragile Assumptions Will Pressure Future Share Performance
Analysts now estimate Youdao’s fair value at about $5.72 per share, reduced from roughly $9.63. The change reflects updated assumptions around revenue growth, profit margins and future P/E that were also cited in recent research supporting a rating upgrade.Seeking Alpha • Feb 26
Youdao Sends Mixed Signals As To Where The Company Is Going
Summary Youdao got a vote of confidence from its biggest shareholder, which helped the stock recoup the losses suffered after the release of the FY2025 report. The FY2025 report shows how DAO has made progress with an increase in profits, but it also raised doubts about whether DAO can keep improving as it needs to. Earnings grew in FY2025, but at a slower pace due to lower margins, and this could continue in the short term as a result of AI. The road ahead for DAO offsets the progress made, which is why I am neutral on DAO with a hold rating. Read the full article on Seeking Alpha
Narrative Update • Feb 21
DAO: Citi Upgrade And Completed Buyback Will Support Higher Future Earnings Multiple
Narrative Update: Youdao Analyst Price Target Shift Analysts have nudged their fair value estimate for Youdao to $11.75 from $11.59, reflecting updated views on revenue growth, profit margin, and future P/E assumptions following recent research such as the upgrade highlighted by Citi. Analyst Commentary Recent research behind the fair value adjustment to US$11.75 points to a mix of optimism about Youdao’s execution potential and caution around how consistently that potential can translate into earnings and valuation support.Narrative Update • Feb 07
DAO: Share Repurchase Completion Will Support Future Earnings Multiple Rebound
Analysts have reduced their price target for Youdao from US$13.04 to US$11.59, reflecting updated assumptions around discount rates, revenue growth, profit margins, and future P/E expectations. What's in the News Youdao has completed the repurchase of 7,500,000 shares, which represents 6.19% of the company, under the buyback program announced on November 17, 2022 (Key Developments).Narrative Update • Jan 24
DAO: Completed Buyback Extension Will Support Future Upside Potential
Analysts now see slightly higher upside for Youdao, lifting their implied fair value estimate from about US$16.30 to roughly US$16.59 as they refresh assumptions for revenue growth, profit margin and future P/E in their models. What's in the News Youdao reported that from July 1, 2025 to September 30, 2025, it repurchased 0 shares for US$0 under its existing buyback program, leaving the total completed at 7,500,000 shares for US$33.8 million, or 6.19% of the company under the plan announced on November 17, 2022 (Key Developments).Analysis Article • Jan 09
Market Participants Recognise Youdao, Inc.'s (NYSE:DAO) Earnings Pushing Shares 32% Higher
Youdao, Inc. ( NYSE:DAO ) shares have had a really impressive month, gaining 32% after a shaky period beforehand...Narrative Update • Jan 09
DAO: Completed Buyback And Extension Will Support Further Share Upside Potential
Analysts have reaffirmed their price target on Youdao at US$16.30, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E that they view as better reflecting the company’s current risk and earnings profile. What's in the News From July 1, 2025 to September 30, 2025, Youdao reported no share repurchases, with 0 shares bought back for US$0, while confirming that it has completed repurchasing 7,500,000 shares, or 6.19%, for US$33.8 million under the buyback first announced on November 17, 2022 (Key Developments).Narrative Update • Dec 14
DAO: Index Inclusion And Buyback Extension Will Support Bullish Upside Potential
Analysts have trimmed their price target on Youdao by about 10 percent to approximately 16 dollars. This reflects slightly higher discount-rate assumptions and a lower future earnings multiple that more than offset stronger projected revenue growth.Analysis Article • Oct 09
Market Participants Recognise Youdao, Inc.'s (NYSE:DAO) Revenues Pushing Shares 26% Higher
The Youdao, Inc. ( NYSE:DAO ) share price has done very well over the last month, posting an excellent gain of 26%. The...Analysis Article • May 16
Youdao, Inc.'s (NYSE:DAO) P/S Is Still On The Mark Following 30% Share Price Bounce
Those holding Youdao, Inc. ( NYSE:DAO ) shares would be relieved that the share price has rebounded 30% in the last...Seeking Alpha • Mar 27
Youdao: The Correction Could Have Further To Go
Summary Youdao is in a precarious state with more liabilities than assets, which is why turning an annual profit for the first time is such a major achievement. The stock put together a furious rally with an assist from AI, but the rally became undone after the FY2025 outlook called for only modest growth. DAO stock has retreated after the FY2024 report, and there is reason to believe the stock has to head lower before support is regained. DAO has to build on the progress made, but it is likely to need a number of things to go its way, something that is not guaranteed. Read the full article on Seeking AlphaAnalysis Article • Mar 26
Youdao, Inc.'s (NYSE:DAO) 26% Cheaper Price Remains In Tune With Revenues
Youdao, Inc. ( NYSE:DAO ) shares have retraced a considerable 26% in the last month, reversing a fair amount of their...
New Narrative • Feb 10
Future AI Integration Will Revolutionize Learning And Marketing Services
The company's AI technology integration is enhancing user experiences, boosting customer retention, and improving profitability in learning services.Analysis Article • Feb 06
Youdao, Inc.'s (NYSE:DAO) 29% Price Boost Is Out Of Tune With Revenues
Despite an already strong run, Youdao, Inc. ( NYSE:DAO ) shares have been powering on, with a gain of 29% in the last...Analysis Article • Nov 27
Investors Appear Satisfied With Youdao, Inc.'s (NYSE:DAO) Prospects As Shares Rocket 27%
Youdao, Inc. ( NYSE:DAO ) shares have continued their recent momentum with a 27% gain in the last month alone. The last...Analysis Article • Oct 01
Youdao, Inc. (NYSE:DAO) Stock Catapults 26% Though Its Price And Business Still Lag The Industry
Youdao, Inc. ( NYSE:DAO ) shareholders would be excited to see that the share price has had a great month, posting a...Analysis Article • Aug 25
Earnings Release: Here's Why Analysts Cut Their Youdao, Inc. (NYSE:DAO) Price Target To US$5.55
As you might know, Youdao, Inc. ( NYSE:DAO ) recently reported its second-quarter numbers. It was a respectable set of...Seeking Alpha • Aug 24
Youdao: Operating Profitability Inflection Point Is In Sight
Summary DAO's operating loss and net loss narrowed significantly on a YoY basis in Q2 2024. Youdao is well-positioned to record positive operating profit for 2H 2024 and the full-year, considering seasonality effects, the restructuring of non-core operations, and the optimization of marketing costs with AI. The stock is deserving of a higher P/S multiple and a Buy rating, taking into account the prospects of the company hitting an operating profitability inflection point this year. Read the full article on Seeking AlphaSeeking Alpha • May 27
Results Beat Validates My Positive View Of Youdao
Summary Youdao's Q1 2024 financial performance surprised the market in a favorable manner considering its higher-than-expected revenue and the achievement of positive normalized earnings. The growth in DAO's AI-related subscription revenue could be a re-rating catalyst for the stock. I continue to rate Youdao as a Buy, taking into account the favorable takeaways from DAO's latest quarterly results. Read the full article on Seeking AlphaAnalysis Article • Feb 28
Youdao, Inc.'s (NYSE:DAO) Share Price Boosted 34% But Its Business Prospects Need A Lift Too
Youdao, Inc. ( NYSE:DAO ) shareholders would be excited to see that the share price has had a great month, posting a...Seeking Alpha • Nov 17
Youdao: Q3 2023 Results Beat Validates My Bullish View
Summary Youdao's Q3 2023 top line, gross margin, and bottom line turned out to be better than what the sell-side analysts had projected. DAO's current $40 million share buyback program expires in November 2025, but it has already completed close to half of its share buyback plan, or $18.3 million to be exact. I still remain bullish on DAO, taking into account its third quarter results beat and its faster-than-expected pace of share repurchases. Read the full article on Seeking AlphaSeeking Alpha • Aug 28
Youdao Gets Boosts From AI, Patient Parent
Summary Youdao’s revenue grew 26.2% in the second quarter, bouncing back from a decline in the previous quarter, on strong performance for its marketing services. The provider of education products and services said its parent agreed to a four-year extension for $200 million in loans coming due next March. DAO managed to keep its operating expenses roughly flat year-on-year. Read the full article on Seeking AlphaSeeking Alpha • Jul 25
Youdao: Staying Bullish On AI Growth Opportunities And Valuations
Summary Youdao, Inc.'s intermediate-term financial prospects are good, considering that the company can leverage on the rise of AI without investing heavily in R&D going forward. DAO's consensus forward price-to-sales and normalized P/E multiples have come down to pretty attractive levels, as the company's share price declined by -23.9% in the last three months. I leave my Buy rating for Youdao unchanged following an assessment of DAO's growth opportunities relating to AI and its current valuation metrics. Read the full article on Seeking AlphaAnalysis Article • Apr 17
It's Down 28% But Youdao, Inc. (NYSE:DAO) Could Be Riskier Than It Looks
Youdao, Inc. ( NYSE:DAO ) shareholders won't be pleased to see that the share price has had a very rough month...Seeking Alpha • Feb 22
Youdao Q4 2022 Earnings Preview
Youdao (NYSE:DAO) is scheduled to announce Q4 earnings results on Thursday, February 23rd, before market open. The consensus EPS Estimate is $0.01 (+104.8% Y/Y) and the consensus Revenue Estimate is $204.67M (+24.3% Y/Y). Over the last 2 years, DAO has beaten EPS estimates 50% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. Revenue estimates have seen 1 upward revision and 0 downward.Seeking Alpha • Feb 06
Youdao: Don't Ignore Smart Devices Business' Growth Potential
Summary There shouldn't be negative surprises when Youdao reports its Q4 2022 results in late-February. I think that DAO's smart devices business has a long growth runway, and I view the stock's current price-to-sales valuation as undemanding. I rate Youdao's shares as a Buy now, after previewing DAO's fourth quarter results and assessing the growth potential of its smart devices business. Elevator Pitch My rating for Youdao, Inc.'s (DAO) shares is a Buy. I reviewed Youdao's financial results for the second quarter of the previous year with my earlier write-up for DAO published on August 23, 2022. In this latest update, I raise my investment rating for DAO from a Hold previously to a Buy now. Youdao's current valuations have yet to factor in positives such as the long term growth outlook for its smart devices business and the low likelihood of below-expectations Q4 2022 results. Q4 2022 Earnings Preview DAO will disclose the company's Q4 2022 financial performance on February 23, before the open. The market expects Youdao to deliver a good set of results for the fourth quarter, and I am of the view that DAO will live up to the analysts' expectations. Youdao's top line growth is projected to accelerate from +1.1% YoY in the third quarter of last year to +36.4% YoY for the final quarter of 2022 in local currency or RMB terms as per consensus financial data obtained from S&P Capital IQ. The sell-side sees DAO's EBIT losses narrowing from -RMB203.0 million in Q3 2022 and -RMB169.3 million in Q4 2021 to -RMB78.7 million for Q4 2022. According to news reports by local Chinese media, Youdao's product sales during the Double 11 Shopping Festival in November last year jumped by +88% YoY to around RMB120 million, and its brand of dictionary pens generated the highest sales among competitors on JD.com (JD) and Alibaba's (BABA) Tmall platforms for Double 11. This means that there is a high probability of DAO's actual revenue for Q4 2022 coming in inline with what the market expects at the very least. Separately, DAO has been optimizing the company's revenue mix to drive an improvement in profitability. Specifically, Youdao is working very hard to grow the company's revenue contribution from learning services and smart devices at a faster pace. The gross profit margins of DAO's learning services and smart devices businesses are at the 60% and 40% levels, respectively; while Youdao's online marketing services business generates relatively lower gross margin in the 20%-30% range. By introducing new smart devices and learning services, DAO is able to gradually shift its revenue mix in favor of higher margin businesses such as learning services and smart devices over time. As such, it is reasonable to assume an increase in gross margin and a narrowing of operating losses for Youdao in the fourth quarter of 2022 and beyond. In conclusion, the risk of a substantial share price correction for Youdao post-Q4 2022 earnings announcement is low, as I expect DAO to report in-line financial results in a few weeks' time. Smart Devices Business' Growth Potential I have an optimistic view of the growth prospects for Youdao's smart devices business. Chinese private equity firm, DuoJing Capital, published a research report titled "China Educational Smart Hardware Industry Report" in 2022. According to DuoJing Capital's research, the number of online education participants grew from 140 million in 2016 to 320 million by 2021. During this time frame, the penetration rate of "educational smart hardware" among Chinese online education participants increased from 19% to 32%. With expectations that smart devices relating to education should become even more popular in the future, DuoJing Capital has forecasted that the size of the "educational smart hardware" could potentially double from RMB65.4 billion for 2021 to RMB131.8 billion in 2024. Sales of DAO's smart devices expanded by a strong +40% YoY to RMB357 million in the third quarter of 2022. Although Youdao is the market leader in specific smart device product categories in China such as dictionary pens, its annualized revenue contribution from the smart devices business is only approximately RMB1.4 billion. This implies that DAO only has a low single-digit share of China's education-related smart device market (RMB65.4 billion market size estimate for 2021). In other words, Youdao is well-positioned to grab a larger share of the growing smart device market in China by leveraging on its current market leadership to launch more new products. Notably, Youdao also indicated at its Q3 2022 earnings briefing that the smart devices business has the potential to achieve higher profit margins in the future as a result of "the application of advanced AI technology and unique learning content." Share Buybacks And Valuations In November 2022, DAO revealed that it has initiated a new $20 million share buyback program which expires at the end of three years.Analysis Article • Nov 16
Youdao, Inc.'s (NYSE:DAO) Intrinsic Value Is Potentially 71% Above Its Share Price
In this article we are going to estimate the intrinsic value of Youdao, Inc. ( NYSE:DAO ) by taking the expected future...Seeking Alpha • Nov 16
Youdao Q3 2022 Earnings Preview
Youdao (NYSE:DAO) is scheduled to announce Q3 earnings results on Thursday, November 17th, before market open. The consensus EPS Estimate is -$0.24 (-84.6% Y/Y) and the consensus Revenue Estimate is $187.45M (-12.9% Y/Y). Over the last 2 years, DAO has beaten EPS estimates 50% of the time and has beaten revenue estimates 100% of the time.Seeking Alpha • Aug 18
Youdao Non-GAAP EPS of -$0.53, revenue of $142.8M
Youdao press release (NYSE:DAO): Q2 Non-GAAP EPS of -$0.53. Revenue of $142.8M (-2.4% Y/Y). Net revenues from learning services were RMB563.6 million (US$84.1 million), representing a 7.3% decrease from the same period in 2021.Shareholder Returns
| DAO | US Consumer Services | US Market | |
|---|---|---|---|
| 7D | 2.2% | -1.1% | 3.2% |
| 1Y | 35.1% | -19.0% | 31.0% |
Return vs Industry: DAO exceeded the US Consumer Services industry which returned -19% over the past year.
Return vs Market: DAO exceeded the US Market which returned 31% over the past year.
Price Volatility
| DAO volatility | |
|---|---|
| DAO Average Weekly Movement | 6.9% |
| Consumer Services Industry Average Movement | 8.1% |
| Market Average Movement | 7.1% |
| 10% most volatile stocks in US Market | 16.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: DAO has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: DAO's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2006 | 3,595 | Feng Zhou | www.youdao.com |
Youdao, Inc., an internet technology company, provides online services in the fields of content, community, communication, and commerce in the People’s Republic of China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The Learning Services segment offers digital content services, which provides interactive learning features, such as Youdao Lingshi; STEAM courses, including Youdao iCode operated by Youdao Premium Courses; and adult courses comprising China University MOOC.
Youdao, Inc. Fundamentals Summary
| DAO fundamental statistics | |
|---|---|
| Market cap | US$1.40b |
| Earnings (TTM) | US$15.78m |
| Revenue (TTM) | US$868.79m |
91.7x
P/E Ratio1.7x
P/S RatioIs DAO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DAO income statement (TTM) | |
|---|---|
| Revenue | CN¥5.91b |
| Cost of Revenue | CN¥3.29b |
| Gross Profit | CN¥2.62b |
| Other Expenses | CN¥2.51b |
| Earnings | CN¥107.35m |
Last Reported Earnings
Dec 31, 2025
Next Earnings Date
May 21, 2026
| Earnings per share (EPS) | 0.89 |
| Gross Margin | 44.29% |
| Net Profit Margin | 1.82% |
| Debt/Equity Ratio | -93.3% |
How did DAO perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/07 09:20 |
| End of Day Share Price | 2026/05/07 00:00 |
| Earnings | 2025/12/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Youdao, Inc. is covered by 11 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Liping Zhao | China International Capital Corporation Limited |
| Yishan Li | China Merchants Securities (HK) Co., Ltd |
| Chongguang Feng | Citic Securities Co., Ltd. |