Youdao (NYSE:DAO) Sets New 1-Year High – Still a Buy?

Youdao, Inc. Unsponsored ADR (NYSE:DAO) shares hit a new 52-week high on Saturday . The company traded as high as $13.10 and last traded at $13.0650, with a volume of 242232 shares changing hands. The stock had previously closed at $11.54.

Key Headlines Impacting Youdao

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 topic of a number of research analyst reports. Wall Street Zen lowered shares of Youdao from a “buy” rating to a “hold” rating in a report on Saturday. Citigroup raised shares of Youdao from a “hold” rating to a “buy” rating in a report on Thursday, February 12th. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Youdao presently has a consensus rating of “Hold”.

Youdao Price Performance

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

Youdao (NYSE:DAO) last announced its quarterly earnings data on Thursday, May 21st. The company reported $0.05 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.05. The firm had revenue of $195.52 million for 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 Inflows and Outflows

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