Stock Track | Youdao Soars 5.49% at Open on Analyst Upgrades and Strong AI-Driven Performance

Stock Track
Feb 12

Youdao's stock surged 5.49% in intraday trading following positive analyst actions and strong financial results that highlighted the company's AI-driven growth trajectory.

The price movement comes after Citigroup upgraded Youdao from Neutral to Buy and raised its price target to $12 from $9.90, while Huatai Securities reaffirmed its Buy rating and increased its target price to $13.56 from $12.46. These upgrades were based on Youdao's better-than-expected Q4 2025 performance, particularly in its advertising business which saw 37.2% year-over-year growth driven by AI application adoption.

Analysts pointed to Youdao's improving financial stability, with the company achieving profitability for six consecutive quarters and recording its first-ever annual net positive operating cash flow in 2025. The company's AI subscription services also demonstrated robust performance, with quarterly sales exceeding 100 million yuan for the first time, representing year-over-year growth of over 80%.

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