2U's (TWOU) edX Ties Up With 6 Universities to Add 50 Degrees
2U, Inc.’s TWOU edX has signed agreements with six universities for the introduction of 50 new degree programs. This initiative falls under the company's “flex” degree partnership model, with the majority launching in 2024.
The additional online degrees will be provided by four new partners, such as Albany College of Pharmacy and Health Sciences, Hawai'i Pacific University, King's College London and Maryville University. Furthermore, two existing partners, Emerson College and the University of Cape Town, will also offer new online degrees.
The recent announcement highlights the substantial interest in 2U's “flex” degree model, with seven previously announced degree contracts, including those from UC Davis and UNC Chapel-Hill, set to launch in 2024. This ongoing momentum aligns with the company's goal to introduce a minimum of 80 new degree programs in 2024.
2U and its collaborators are consistently dedicating resources to develop top-notch and innovative content in highly sought-after fields. As a prominent contributor to tech talent development globally, TWOU is steadfast in broadening its range of free-to-degree offerings on edX.
2U, Inc. Price and Consensus
2U, Inc. price-consensus-chart | 2U, Inc. Quote
2U’s edX Faces Tough Competition in the E-Learning Market
According to a report by VMR, the E-Learning Market size was valued at $260.43 billion in 2022 and is projected to reach $952.14 billion by 2030, witnessing a CAGR of 17.67%.
The expansion of advanced technologies, such as artificial intelligence, cloud-based learning management systems and an increase in demand for the online classroom are driving the market growth of the E-Learning Market.
Shares of 2U, which currently carries a Zacks Rank #3 (Hold), have declined 83.6% year to date against the Zacks Computer and Technology sector’s rise of 41.4% due to tough competition from Coursera COUR and Google GOOGL. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coursera, an American-based provider of massive open online courses, was established in 2012 by computer science professors Andrew Ng and Daphne Koller from Stanford University. The company, being a leader in the E-Learning segment, collaborates with universities and various organizations to provide a diverse range of online courses, certifications and degrees across multiple subjects.
Grow with Google is an initiative of GOOGL to help individuals develop digital skills. It was created with the aim of strengthening local businesses and creating an economic impact. Being a well-known brand across the globe, this initiative has reached various corners of the world.
edX and HP HPE have introduced a novel initiative, the Online Professional Certificate, focusing on Esports Management, Game Design and Programming. This program comprises more than 60 thoughtfully developed modules aimed at equipping learners with skills for careers in gaming, media and information and communication technology. This is expected to boost TWOU’s degree alternative credential revenues in the upcoming quarters.
The Zacks Consensus Estimate for 2U’s 2023 degree alternative credential revenues is pegged at $425.15 billion, indicating year-over-year growth of 8.6%. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share, indicating year-over-year growth of 221.43%.
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