Gaotu Techedu: Profitability Concerns Overblown, Maintaining "Buy" Rating

Tom Werner I last wrote about Gauto Techedu in August after Chinese government issued a guideline aimed at boosting consumption and services including tutoring services. What’s interesting is that GOTU’s Q2 earnings results, which were released on Tuesday, August 27th before the bell, actually validated my thesis. However, the stock nosedived almost 19% after the earnings release for two days in a row, most likely due to the much wider-than-expected adjusted net losses. I think the price action could als ...