China-based internet technology company Youdao’s (DAO) shares have plunged in price amid strict regulations placed on the education industry by Chinese authorities in recent months. However, the company’s revenue grew across all its major segments in its last reported quarter. Do you think it is wise to purchase the stock’s dip? Continue reading. Headquartered at Hangzhou, China, Youdao, Inc. is an intelligent learning company. It develops, uses, and distributes learning applications, content, and solutions to users of all ages. This stock was also added to the MSCI China All Shares Small Cap Index (November 30). In the third quarter, revenue increased across all categories. However, the stock has declined 50.9% in price over the past six months and 28.3% over the past month to close yesterday’s trading session at $11.28.

On July 27, 2021 it fell to $7.02, an all-time low. This was partly because the Chinese authorities tightened restrictions on education. China’s crackdown on Big Tech platforms and internet content continues.

Furthermore, U.S.–China tensions will likely continue through 2022, impacting DAO. In addition, it may soon sell its AST business, which could impact its short-term prospects.

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