Home Top Movers GSX Techedu Inc. (GSX) Stock Prices Trending Up as Global Shift Towards...

GSX Techedu Inc. (GSX) Stock Prices Trending Up as Global Shift Towards e-Learning Continues

GSX Techedu Inc. (GSX) stock prices were up 2.7% as of market close on April 27th, 2021, having bumped the price up to USD$31.99 at the end of the trading day. Subsequent premarket fluctuations saw the stock price climb 5.97% to USD$33.90.

Get the hottest stocks to trade every day before the market opens 100% ‎free. Click here now. 

Increases in Revenue

GSX reported a massive net revenue of nearly USD$341 million for the fourth quarter of 2020, representing a 136.5% increase from net revenues reported in the same time period of the previous year. This significant improvement is attributed to the surge in the number of online K-12 paid course enrollments, which showed a year-over-year improvement of 112.8% bringing total enrollments as of the end of Q4 2020 up to 2,139,000.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


  Read More

Consumer Shift Towards e-Learning

Effective allocation of resources towards sales and marketing efforts is primarily responsible for the increase in first-time paid course enrollments, while increases in retention can be attributed to the company’s high standard of teaching as well as the selection of optimized services offered by GSX. The adversities imposed by the COVID-19 pandemic and consequent government mandates and restrictions have also been responsible for an overall uptrend in remote learning and teaching.

Growth Driven Costs of Revenue

As the company grows and hires more instructors and tutors, costs of compensation also increase, as do posts related to learning materials and rental spaces. As such, the cost of revenue rose from USD$30.23 million in Q4 of 2019 to USD$95.06 million for the fourth quarter of 2020, representing a very significant year-over-year increase of 214.5%.

Strategizing for the Future

In an effort to consolidate long-term growth at the expense of diminished gross profit margins, GSX has allocated more resource in expanding its workforce and improving teaching quality with the hiring of increasingly qualified professionals. The drive to improve students’ overall learning experience will lay a strong base for the company’s future long-term development. In light of this strategy, GSX reported a gross profit margin of 72.1% compared to 79% reported in Q4 2019, despite gross profits having increased by 115.8% to USD$245.93 in the fourth quarter of 2020.

Get the hottest stocks to trade every day before the market opens 100% ‎free. Click here now. 

Hopeful Outlook for GSX

With the pandemic continuing to drag on and the global education landscape perpetually suffering and bring forced to adapt, the scope of online education is greater than ever. As evidenced by the numbers, GSX has experienced substantial growth as schools and education facilities are shut down as a part of government regulations to curb the spread of the coronavirus. Current and prospective investors are hopeful that the company will continue to leverage its resources to ensure long-term growth and increases in shareholder value.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Must Read

Onesmart International Education Group Ltd. (ONE) stock surges during current market. What’s driving it high?

Onesmart International Education Group Ltd. (NASDAQ: ONE) stock gains by 111.86% in the current market trading session. OneSmart International Education is a major Chinese...

LivePerson Inc. (LPSN) stock plunge during pre-market. What’s driving it low?

LivePerson Inc. (NASDAQ: LPSN) stock gained by 0.86% at last close whereas the LPSN stock declines by 9.39% in the pre-market trading session. Through...

The Clorox Company Ltd. (CLX) stock decline during pre-market. Here’s the recent update

The Clorox Company Ltd. (NASDAQ: CLX) stock gained by 0.17% at last close whereas the CLX stock price fell by 11.59% in the pre-market....

IT Tech Packaging Inc. (ITP) stock gains during pre-market. Here’s what’s happening?

IT Tech Packaging Inc. (NASDAQ: ITP) stock gained by 7.53% at last close while the ITP stock price rises by 2.04% in the pre-market...

Why did The9 Limited (NCTY) stock turnaround in the after-hours on Friday?

The9 Limited (NCTY) shares gained 6.87% in after-hours on Friday, July 30, 2021, and closed the weekly trading at $11.98 per share. in the...

OneConnect Financial Technology Inc. (OCFT) stock plunge during current market. Here’s what you should know.

OneConnect Financial Technology Inc. (NASDAQ: OCFT) stock declines by 22.12% in the current market trading. In China, OneConnect is the most popular technology-as-a-service platform...

Invitae Corporation Inc. (NVTA) stock surge during current market. Here’s the update:

Invitae Corporation Inc. (NASDAQ: NVTA) stock gains by 12.35% in the current market trading session. Invitae Corporation is a prominent medical genetics business whose...

LivePerson Inc. (LPSN) stock plunge during pre-market. What’s driving it low?

LivePerson Inc. (NASDAQ: LPSN) stock gained by 0.86% at last close whereas the LPSN stock declines by 9.39% in the pre-market trading session. Through...

Related News

Here is why Activision Blizzard Inc. (ATVI) stock turnaround in the after-hours on Tuesday?

Activision Blizzard Inc. (ATVI) shares gained 6.10% in after-hours on Tuesday, August 03, 2021, and closed the daily trading at $84.70 per share. Earlier...

Lixte Biotechnology Holdings Inc. (LIXT) stock surge during current market. Here’s the recent news

Lixte Biotechnology Holdings Inc. (NASDAQ: LIXT) stock gains by 32.32% in the current market trading session. Lixte Biotechnology Holdings is a clinical-stage pharmaceutical business...

Arcturus Therapeutics Inc. (ARCT) stock surged during pre-market. Here’s the latest news.

Arcturus Therapeutics Holdings Inc. (NASDAQ: ARCT) stock gained by 10.7% at last close while the ARCT stock rises by 7.53% in the pre-market trading...

Here is why Ramaco Resources Inc. (METC) stock performed well on Monday?

Ramaco Resources Inc. (METC) shares surged 9.46% in after-hours on Monday, August 2, 2021, and closed the daily trading at $7.29 per share. in...

General Electric Company Inc. (GE) stock sky-rocketing during pre-market. Here’s what you should know

General Electric Company Inc. (NASDAQ: GE) stock plunged by 2.56% at last close whereas the GE stock price surged massively during pre-market by 704.32%....

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

100% free. stop anytime no spam