17 Education & Technology Group Inc. (YQ) stock plummeting continues on Monday pre-market but why?

BIIB Stock
BIIB Stock

17 Education & Technology Group Inc. (YQ) stock has declined 21.28% as of this writing in Monday,s pre-market. In the regular trading session on Friday, YQ’s stock lost 38.70%. YQ stock has moved down 44.05% in the past week. Over the past three months, the YQ stock has lost 80.66%, while over the past six months, it has shed 91.66%. Further, the company has a current market of $443.80 million and its outstanding shares stood at 187.87 million.

YQ facing investigation

On July 23, 2021, Labaton Sucharow, a nationally ranked and award-winning shareholder rights firm, announced that it is investigating 17 Education & Technology Group Inc for potential securities violations and breach of fiduciary duty.

From Robots to Self-Driving Cars: 5 AI Stocks to Consider for Your Portfolio

The artificial intelligence (AI) revolution is already here and it's about to change everything we know about everything. With the global market for AI projected to grow from $137 billion in 2022 to over $1.81 trillion by 2030, there's never been a better time to invest in this burgeoning industry. That's why we've compiled a list of the Top 5 AI Stocks to Buy for 2023. These companies are at the forefront of the AI revolution, and have the potential to deliver huge returns to investors like you.

Get our free report, "Top 5 AI Stocks to Buy for 2023".


On July 23, 2021, the stock price of 17 Education & Technology Group Inc. fell by over 40% premarket after Bloomberg reported that the Chinese government is reportedly considering converting tutoring companies into non-profit organizations.

YQ Response to Media Reports and market speculations

On July 23, 2021,17 Education & Technology Group Inc (YQ) noted that certain English and Chinese language media outlets reported that the PRC regulators are considering a new set of regulations concerning after-school tutoring services related to school subjects taught in China’s compulsory education system. The regulations have not been published, and the Company has not received official notification of the regulations. It is the Company’s policy not to comment on market speculations.

YQ Recent financial results announcement

On May 24, 2021, 17 Education & Technology Group Inc (YQ) reported its unaudited financial results for the first quarter ended March 31, 2021.

Q1 2021 financial highlights

  • 17 Education & Technology Group earned net revenue of 2 million (US$72.4 million) in Q1 2021 compared to RMB229.0 million in the first quarter of 2020.
  • In Q1 2021, the gross margin was 60.4%, compared with 64.1% in Q1 2020.
  • In Q1 2021, the total operating expenses were 2 million (US$145.5 million) compared to RMB374.6 million in the first quarter of 2020.
  • YQ suffered a net loss of RMB659.7 million (US$100.7 million), compared with a net loss of RMB224.2 million in Q1 2020.
  • The adjusted net loss was 8 million (US$89.9 million) inQ1 2021 compared with an adjusted net loss of RMB178.7 million in the first quarter of 2020.
  • As of March 31, 2021, YQ had cash and cash equivalents of RMB2,240.3 million (US$341.9 million) compared with RMB2,835.0 million as of December 31, 2020.


The YQ stock lost significantly in the morning session due to speculations which we have discussed above. YQ also suffered a heavy loss on Friday as well but made some recovery in the aftermarket on Friday. Let’s see how it perform in the remaining trading session of today.


Please enter your comment!
Please enter your name here