Youdao

Company Overview.

Youdao is the leading intelligent learning company in China with over 100.0 million average total monthly active users.. Through technology, they offer a comprehensive suite of learning products and services that are accessible, reliable and trustworthy.

Is Dao really a good pick?

Their products and services are built upon a common set of core technologies, which allows them to use data insights gained from individual products or services to help optimize their entire product and service portfolio. Their business has evolved significantly and never stopped re-imagining and innovating products and services. Since their inception, their apps have amassed over 1.3 billion cumulative downloads and more than 200 million student enrollments. Fueling all of these great achievements are our technologies.

Dao's business model is very interesting, they are a platform with more than 100 million people using their service. In a radical way, they sell information in different ways and they have made some innovations that are so useful, not only for Chinese people like their translator pen.

The company all 2021 had a very good quarterly report, but there are some important points to consider looking at fundamentally, with a high level of debt and a government that does not want to expose their companies to the rest of the world, certainly, the Chinese market is the largest in the world and DAO is doing well in some aspects but if they do not have control among their assets, the company will have many problems in the long term.

Technical Analysis.

From June to July, the stock lost 75% of its value and last July 21 the stock dropped 68% when the CAC (Cyberspace Administration of China) launched an investigation on didi and in fact, the whole Chinese technology dropped very hard.

From July to December the share price has risen and some bad news, such as the Covid Omicron and Ever grande crisis have impacted it, but it is still in an uptrend since its painful fall.

Looking at the indicators on the chart, we find that the RSI has been almost all December under the neutral zone, but in the last week, it is starting to leave that zone which indicates a bullish movement, in other hand the last week, MACD has crossed up his signal EMA9(signal in red) and confirm that the price will maintenance its uptrend at least to the second Fibonacci resistor on $15.8.

Another point important, for this month is that SMA50 is so near to the price, and the indicators mentioned said us probably, that the price will break it, which help to the price to continue in its rise momentum