Youdao (NYSE:DAO) Stock Price Down 11.3% – What’s Next?

Youdao, Inc. Unsponsored ADR (NYSE:DAO)’s share price dropped 11.3% during mid-day trading on Thursday . The company traded as low as $10.78 and last traded at $10.9990. Approximately 19,485 shares changed hands during trading, a decline of 77% from the average daily volume of 84,642 shares. The stock had previously closed at $12.40.

Youdao News Roundup

Here are the key news stories impacting Youdao this week:

• Positive Sentiment: First-quarter revenue rose 3.8% year over year to RMB1.3 billion ($195.4 million), showing that Youdao is still growing despite a competitive education and AI market. Youdao Reports First Quarter 2026 Unaudited Financial Results
• Positive Sentiment: Adjusted earnings met analyst expectations at $0.05 per share, which likely helped support the stock by signaling that profitability is holding up better than feared. Youdao earnings report and conference call
• Neutral Sentiment: Management highlighted its AI pivot and strategic investments, which may improve long-term growth but also keep near-term margins under pressure. Youdao Inc (DAO) Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Several transcript-focused articles suggest investors are parsing management commentary for clues on how the AI strategy will balance growth and profitability. Earnings call transcript: Youdao Q1 2026 shows earnings miss, stock steady
• Negative Sentiment: Revenue came in below analyst expectations of $201.4 million, and headlines noted an earnings miss in some transcript coverage, which tempers the upbeat reaction. Youdao (DAO) Q4 2025 Earnings Transcript

Analyst Ratings Changes

DAO has been the subject of a number of analyst reports. Citigroup raised shares of Youdao from a “hold” rating to a “buy” rating in a research note on Thursday, February 12th. Wall Street Zen lowered shares of Youdao from a “buy” rating to a “hold” rating in a research note on Saturday. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Youdao currently has an average rating of “Hold”.

Youdao Stock Performance

The business’s 50 day moving average price is $10.80 and its two-hundred day moving average price is $10.35. The company has a market capitalization of $1.57 billion, a price-to-earnings ratio of 145.17 and a beta of 0.57.

Youdao (NYSE:DAO) last issued its quarterly earnings results on Thursday, May 21st. The company reported $0.05 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.05. The company had revenue of $195.52 million during the quarter, compared to analyst estimates of $201.43 million. Youdao had a net margin of 1.19% and a negative return on equity of 4.50%.

Institutional Trading of Youdao

An institutional investor recently raised its position in Youdao stock. Public Employees Retirement System of Ohio increased its holdings in Youdao, Inc. Unsponsored ADR (NYSE:DAO) by 35.9% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 29,286 shares of the company’s stock after purchasing an additional 7,729 shares during the quarter. Public Employees Retirement System of Ohio’s holdings in Youdao were worth $291,000 at the end of the most recent quarter. 21.91% of the stock is currently owned by institutional investors.

Youdao Company Profile

Youdao, Inc (NYSE: DAO), established in 2006 as a subsidiary of NetEase, is headquartered in Beijing, China. The company went public on the New York Stock Exchange in October 2019, marking a significant milestone in its development as an intelligent learning and knowledge service provider. Since its inception, Youdao has combined cloud computing, artificial intelligence and big data analytics to create an adaptive learning ecosystem designed to meet the needs of individual learners and organizations.

At the core of Youdao’s offerings is its suite of digital dictionaries and translation tools, including the flagship Youdao Dictionary app and translation engine.