Shares of Udemy, Inc. (UDMY) are experiencing a significant pre-market plunge, dropping 6.40% following a series of analyst actions that paint a less optimistic picture for the online learning platform.

The downward pressure on Udemy's stock comes as multiple research firms adjusted their outlook on the company. Canaccord analyst Jason Tilchen lowered the firm's price target on Udemy to $12 from $14, while maintaining a Buy rating. Meanwhile, Needham maintained its price target at $11 per share, which is notably below the stock's previous closing price. Additionally, William Blair analyst Stephen Sheldon reiterated a Hold rating on UDMY stock, further contributing to the cautious sentiment.

These analyst actions suggest a more conservative view of Udemy's near-term prospects, despite some maintaining positive long-term outlooks. The online education sector has faced challenges as the world adjusts to post-pandemic learning environments, and investors appear to be recalibrating their expectations for Udemy's growth and profitability. As the market digests these new price targets and ratings, it will be crucial to monitor how Udemy addresses these concerns and navigates the evolving landscape of digital learning platforms.