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Alec Hogg: Long neglected 2U catches fire
'For some months the investment was underwater. The stock is now showing a 44% gain', says BizNews founder Alec Hogg.
My neighbour Manny is a devoted BizNews Premium subscriber – and regularly teases me about any stock selections that don't match the gains of his favourite share, the ever-rising Pinterest (4x past year). He's especially enjoyed ribbing me about 2U Inc, the global leader in online tertiary education. That's about to end.
On Thursday night, 2U reported fourth quarter financial results far surpassing market expectations with revenue +32% and operating profit almost quadrupling from a year before. What investors absolutely love, however, is how free cash flow contracted for the fifth successive quarter to a virtual break-even position (below). That opens a $518m bank balance for growth or acquisitions.
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