New Oriental Education & Technology Group Inc. (EDU), a company providing private educational services in China, closed Thursday’s regular session at $11.90 after a mammoth jump of 848.21% during the day, attributable to a reverse stock split. In the premarket, EDU has declined by 4.20% and is trading at $11.41 at the time of the writing.
EDU to Release Q3 2022 Results
The latest release from EDU was regarding the date of the financial results announcement. The company announced hours ago that it would report the financial results for Q3 2022 before the opening of the market on the 26th of April 2022. The management of the company intends to host a conference call on the same day as well, where it would discuss the financial results and operational developments of the third quarter of 2022.
Educational Industry on Brink of Rise
Education stocks, like EDU, have grown over several years, because they had strong fundamentals. This makes them ideal for investors who are looking for opportunities across the market. Also, a shift toward innovation has played a significant role in changing the fortunes of the sector, for example, the e-learning market is expected to be worth $243 billion during the current year.
Facing Wrath of Chinese Authorities
In 2021, the shares of EDU slipped down by more than 90%, largely owing to the ban on for-profit tutoring by the Chinese authorities. As a result of that step, several educational companies, including EDU, saw a significant fall in their value. However, in the wake of these steps, EDU has found new methods to keep itself floating, but it hasn’t been able to do much to improve its volatile situation.
Looking ahead, EDU doesn’t seem to be heading toward a good situation soon. As the stock shows volatile signs, investors tend to invest for a shorter time, which further exacerbates the capriciousness associated with it. However, as the audit-related issues between US and China are heading toward a peaceful resolution, which was a major bone of contention for Chinese stocks, investors should also look toward longer-term investment in EDU stock to attain solid returns.