Udemy - AI Stock Analysis

Analysis generated January 8, 2026

Udemy, Inc. is a global education company that provides an online platform for both learners and instructors. The company offers a wide range of courses taught by instructors in numerous fields including business, technology, and personal development. This model allows for a diverse catalog of courses and aims to democratize education by making high-quality learning accessible to anyone, anywhere.

Fundamental Analysis

Udemy's revenue for the last quarter was $196 million. Although this represents a 2.10% decrease compared to the previous quarter, it still shows a positive growth of 0.13% compared to the same quarter last year. The net income for the last quarter was $1.6 million, which is a significant year-over-year growth of 106.50%, but a sharp decline of 73.79% quarter-over-quarter. This indicates some inconsistencies that warrant further scrutiny.

The EBITDA for the last quarter stood at $9.2 million, exhibiting a year-over-year increase of 178.00%. However, the quarter-over-quarter decrease of 36.11% is worrying. These mixed signals in the fundamentals suggest a need for cautious optimism. Positive year-over-year growth in revenue, net income, and EBITDA reflects the company's potential, but the quarterly declines indicate short-term hurdles.

Technical Analysis

Today's stock price stands at $5.80, representing a short-term increase of 10.27% compared to a month ago. This suggests a positive trend in the short term. However, the long-term picture is bleaker, as the stock has seen a 33.03% decline over the past year. The overall trend remains bearish, as indicated by the current SMA10 (10-day Simple Moving Average) of $5.71, slightly lower than the previous SMA10 of $5.72. This could signify a potential downward trend in price movement.

The RSI (Relative Strength Index) for Udemy stands at 18.7, indicating an oversold condition which might be a bullish signal and a potential upward price movement if conditions improve.

Alternative Data Analysis

Alternative data metrics provide deeper insights into Udemy's underlying trends. Job postings have decreased by 29% to 50 open positions over the last couple of months, likely indicating efforts to cut costs or improve margins, which is not ideal for a growth-oriented company. Only 43% of employees have a positive business outlook, although this figure has been trending up by 26% recently, suggesting improvements in employee sentiment.

Customer acquisition metrics are also concerning. The number of visitors to Udemy's website is down by 14% over the last couple of months, posing a worrisome trend. However, daily app downloads remain stable at 8,300. Customer engagement on social media shows mixed results; the Instagram follower base remains steady at 3.6 million, while the Twitter follower base has declined by 1% to 290,000, indicating a slight loss in interest.

Furthermore, AltIndex's AI score, which leverages fundamental, technical, and alternative data to predict stock performance, gives Udemy a score of 27. This is a strong sell signal, suggesting significant risks ahead.

Conclusion and Recommendation

Udemy presents a mixed investment case. While there are positive year-over-year growth signs in fundamental metrics like revenue, net income, and EBITDA, the significant quarter-over-quarter declines suggest potential short-term challenges. The technical analysis points towards a bearish trend, tempered by a low RSI indicating an oversold condition that might lead to a rebound. Alternative data raises additional red flags with declining job postings, low yet improving employee sentiment, and reduced website traffic.

Considering the various indicators, both conventional and alternative, a cautious approach is advisable. The current data leans towards a HOLD or SELL recommendation, given the potential for further declines and the strong sell signal from the AI score. Investors should closely monitor the company's upcoming earnings reports, market conditions, and any strategic changes aimed at reversing the current negative trends.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.