TAL education
China’s online education industry is under threat of destruction. Shares of leading services fell 3 times over the week, and 10 times over the year. In Russia, among the Chinese edtech securities, only Tal Education is traded, its shares have passed into the category of penny stocks (below $ 5 per share).
For investors who have invested in these securities fundamentally, with an eye on the years, it’s time to look for an alternative. There are companies in the same segment that have grown on news from China, or have behaved neutrally. Let’s see if it’s worth investing in them now.
American alternative
Tal Education belongs to a narrow and once very promising sub-segment of online school education (tutoring and tutoring). On the SPB Exchange, securities are traded that work in the same niche, but in the United States, where the risks of state regulation are an order of magnitude than in China.
- Chegg Inc
On the market for over 15 years. Initially, the business was associated with the rental of electronic and paper textbooks, but today it is mostly a platform for distance learning. Like Tal Education, there are online tutoring services, mainly in mathematics and English. The paid subscriber base is over 3 million people. Some of the manuals have already been translated into Chinese.
- 2U Inc
It has been operating since 2008. Previously called 2tor Inc, today it is a multifunctional cloud service for colleges, universities and teachers. Classes are held by video link in learners learners, participate in learners learners. Services are not translated into Chinese.
- Stride Inc.
Founded over 20 years ago. Also known as K12 Inc. The company is entirely focused on distance education for children. Provides tutoring services to students from preschool age to college or university. The business model is also built on payments from parents who order online programs for home-based students. Not translated into Chinese.
More details on BCS Express:
https://bcs-express.ru/novosti-i-analitika/chem-zamenit-aktsii-tal-education-top-al-ternativnykh-bumag-na-spb