What Happened?
Shares of Udemy (NASDAQ: UDMY) jumped 22% in the afternoon session after its rival in the education technology space, Coursera, announced plans to acquire the online learning platform in an all-stock deal.
Under the terms of the merger agreement, Udemy stockholders were set to receive 0.800 shares of Coursera common stock for each share of Udemy they owned. This exchange ratio represented a 26% premium based on the average closing prices of both companies over the 30 trading days before the announcement. The transaction valued the combined company at approximately $2.5 billion. Following the merger, Udemy was to become a wholly owned subsidiary of Coursera. The companies expected the combination to create a comprehensive education technology platform with annual revenue exceeding $1.5 billion and achieve about $115 million in annual cost savings within two years of closing.
Is now the time to buy Udemy? Access our full analysis report here.
What Is The Market Telling Us
Udemy’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Udemy and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 2.9% on the news that KeyBanc reiterated its "Overweight" rating on the stock, and the company announced a new strategic partnership.
The investment firm maintained its $9.00 price target after meeting with Udemy executives, expressing "increased confidence in Udemy's NT growth reacceleration." KeyBanc's commentary also highlighted the company's focus on driving subscription revenue and a strong near-term product roadmap. Further boosting sentiment, Udemy announced a partnership with Workera, an AI-powered skills verification platform. This collaboration aimed to create a solution for organizations to measure their workforce's skills, identify gaps, and deliver targeted training through Udemy's courses to address them.
Udemy is down 23.9% since the beginning of the year, and at $6.27 per share, it is trading 37.9% below its 52-week high of $10.10 from February 2025. Investors who bought $1,000 worth of Udemy’s shares at the IPO in October 2021 would now be looking at an investment worth $228.11.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
