- 2U, the OPM (online program management) company that helps universities bring their programs into the online market will now own the pioneering MOOC (massive, open, online courses) provider created by Harvard and MIT in 2012.
- What does 2U get from the deal? Access to edX’s 50 million users (the majority are outside the U.S.), 1,200 enterprise clients, a very good brand, more than 500 university partners, and 200 additional corporate-university partners.
- In an earnings call last week, 2U made the math clear: if it converts only .03% of registered edX learners into its regular offerings, it will reduce the cost of student acquisition by 10% to 15%. Cost of acquisition is huge in online education, 20% or more of the overall budget.
- While getting a lot less attention than the acquisition of edX, 2U’s recently announced partnership with Guild, a workforce intermediary bringing together large scale employers and education providers (SNHU is one such provider and I serve on the Guild Advisory Board) is an example of a telling ecosystem change.
Here's what Wall Street thinks about 2U ($ 26.29) as of today:
- No of analysts: 11
- Consensus Rating: Strong Buy
- Consensus Rating Score: 4.2/5
- Consensus 1-year Revenue Growth Est: 15.94%
- Consensus 1-year Earnings Growth Est: 59.65%
- Consensus 1-year Price Target: $59
*Upside potential based on consensus estimates: +124.42%
Analyst estimates taken from Wall St Rank. News seen on Wall Street Journal. Who else thinks Education is in for a wild shift?
Submitted November 16, 2021 at 09:48PM by amritrupa https://ift.tt/3nnsgP9
