On February 11, 2026, Citigroup upgraded Youdao, Inc. (NYSE: DAO) to a "Buy" rating from "Neutral," with the stock priced at $9.48. Youdao, based in Hangzhou, China, specializes in AI-powered solutions. The company focuses on learning and advertising verticals, competing with other tech firms in the AI and education sectors.
Youdao reported strong financial results for the fourth quarter and fiscal year ending December 31, 2025. The company achieved total net revenues of RMB1.6 billion, or approximately $223.7 million, in the fourth quarter. This represents a 16.8% increase compared to the same period in 2024, showcasing the company's growth trajectory.
Dr. Feng Zhou, CEO of Youdao, highlighted the company's operational momentum, marking their sixth consecutive quarter of operating profitability. For the full year 2025, Youdao achieved its first full year of positive operating cash flow. This indicates the company's improving financial health and ability to generate cash from its operations.
The stock price of DAO on the NYSE is currently $9.48, reflecting a decrease of 3.56% or $0.35. Today, the stock has traded between a low of $9.34 and a high of $10.14. Over the past year, DAO has reached a high of $12.96 and a low of $6.30, indicating some volatility in its stock performance.
Youdao's market capitalization stands at approximately $1.12 billion, with a trading volume of 114,283 shares. The company's growth in Youdao Lingshi, online marketing, and AI-driven subscription products underscores its resilience and commitment to its AI-Native strategy.
