|Bid||73.02 x 800|
|Ask||75.50 x 800|
|Day's Range||72.98 - 74.19|
|52 Week Range||43.23 - 83.68|
|Beta (5Y Monthly)||0.12|
|PE Ratio (TTM)||1,801.22|
|Earnings Date||Jan 19, 2021 - Jan 25, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 09, 2017|
|1y Target Est||82.86|
(Bloomberg) -- Carson Block is having an unusually tough time betting against Chinese stocks.The famed short seller’s recent calls to unload shares of GSX Techedu Inc., TAL Education Group and Joyy Inc. have largely backfired after the stocks rallied following brief dips when his reports were first posted.“GSX, after we reported it, tripled,” Block said in an interview with Bloomberg Television. “There is clearly something wrong.”Block, founder of Muddy Waters Research, isn’t questioning his methods. He blames options traders, small floats and investors taking advantage of low volumes to push the Chinese stocks back up after his calls.The result has been a grim year of shorting China equities for Block, who earned his reputation following successful bets against companies like Noble Group Ltd., the commodities firm in Singapore, and Sino-Forest Corp., a Canada-based timber company that operated in China.GSX, the online education firm that Muddy Waters called out in May, soared more than 200% through August before paring some of its gains. TAL Education has almost doubled since Block announced his short position more than two years ago.GSX has said Muddy Waters doesn’t understand its business model. TAL Education called the report erroneous and deceptive.“Given the infamy of short sellers and unchanging methods, a short sell report essentially puts a bullseye on their back asking for a short squeeze,” Justin Tang, head of Asian research at United First Partners, said in an email. He also noted the impact of the recent market rally. “Short sellers are swimming against the current at the moment, given the overhang lifting from the U.S. elections and the coronavirus vaccine.”The trend is playing out again with Joyy, the streaming service that plunged 26% on Nov. 18 when Muddy Waters announced its short call. The stock is crawling back, down just 12% since before the call, eroding gains from Block’s short bet.Block said Joyy is a “fraud” that’s a zero since 90% of the “gifters” who are allegedly paying for entertainment on Joyy’s servers are robots.“The reality is that the vast, vast, vast majority of the gifters are fake and the money is round tripped and recycled” Block said in the interview with Erik Schatzker.Joyy has said Block doesn’t understand the way streaming services work in China.“Muddy Waters’s report is full of ignorance about the live-streaming industry and the live-streaming ecosystem,” Joyy said in a statement. “The report contains a large number of errors with unclear logic, confusing data, and hasty generalizations.”Insane AlphaBlock says about 65% of the names he has shorted over the past decade have declined in the long term, generating added value, or alpha, for his clients. One of his notable winners this year was in China -- Luckin Coffee Inc. is down almost 90% since his January bet.“What we short generates pretty insane alpha,” he said, without elaborating on his returns. “This year, all bets are off.”Matt Wiechert, founder of Bonitas Research LLC, agreed it’s been difficult to short stocks in China this year, with the pandemic making it harder for proper due diligence to detect potential fraud.“This has been an unusually tough year staying short Chinese stocks,” he said in a phone interview. “Investors seem to be caring less about owning frauds than in previous years.”Block meanwhile reiterated his call for the U.S. Securities & Exchange Commission to delist the Chinese firms that it can’t properly monitor.“This is China and the Chinese stock promotion, manipulation fraud machine laughing in the face of the SEC,” he said. “If they are ripping us off, then we need to delist. Otherwise this is a total joke and what’s the point of the market?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Chinese technology company Tencent Holdings Ltd. is a lead investor in a funding round that valued the online education startup Udemy Inc. at more than $3 billion, according to people familiar with the matter.Investors were also told by Udemy that the company could pursue an initial public offering next year, said the people, who asked not to be identified because the matter is private.Udemy said Wednesday that it has raised $50 million in a round valuing the company at $3.25 billion before the new investments. The San Francisco-based company named Learn Capital as one of the firms participating in the round. It didn’t disclose whether Tencent was an investor and it’s unclear how much Tencent contributed.Udemy had been looking to raise $100 million in new funding, according to a regulatory filing in Delaware.Beyond its core gaming and social media empire, Tencent invests in China and increasingly outside it, grooming upstarts in everything from supplying fresh vegetables to building electric vehicles.It has a range of U.S. investments from private ones in Epic Games Inc. and Reddit Inc. to public companies such as Warner Music Group Corp. and Activision Blizzard Inc. Although its super-app WeChat is the target of a U.S. ban halted by a court injunction, Tencent has yet to take much of a blow as the world’s two biggest economies clash, unlike Huawei Technologies Co. or TikTok’s parent ByteDance Ltd. In China, Tencent is facing a government clampdown to reign in big tech’s monopoly power.Online learning is one of the most hotly contested arenas in China, with incumbents like TAL Education Group going head to head against tech companies like ByteDance and NetEase Inc. Tencent has its own online learning platform in-house, while making bets in startups including Yuanfudao and VIPKid, both of which focus on after-school tutoring.A representative for Tencent declined to comment.Tencent’s largest investors include Naspers Ltd., the South African parent company of Prosus NV, which is also an Udemy backer. Udemy was valued at $2 billion in a funding round earlier this year. It’s also backed by Insight Partners and Stripes Group. With the new round, it’s one of the most valuable education technology companies.Udemy Chief Executive Officer Gregg Coccari said in an interview that the company doesn’t have a time frame in mind for an IPO.“We’re of course preparing the company for that eventuality if the board so chooses,” Coccari said. “We haven’t taken any steps.”Inbound InterestHe said Udemy has received inquiries from so-called blank-check companies, which allow a business to go public through a merger rather than an IPO.“It was all inbound interest, nothing that we were chasing at all,” Coccari said. “The board will consider any kind of options that we have in the future.”While declining to offer specifics, he said the company has hundreds of millions of dollars in revenue.Udemy and competitor Coursera Inc. are among the companies benefiting as the coronavirus pandemic prompts more people to experiment with virtual courses. Udemy offers professional, technical and personal development courses, as well as an array of classes as varied as cybersecurity and guitar.Rob Hutter, Learn Capital’s managing partner, said that Covid-19 dramatically boosted Udemy’s business.Computer Time“People are spending more time in front of their computers,” Hutter said. “They are utilizing that time to learn new skills and it has created a variety of new behaviors.”Udemy has enrolled 35 million students in more than 130,000 online courses, according to its website. The latest funding will help it expand to new markets. It has offices in Denver, Brazil, India, Ireland and Turkey as well as California.Coccari said the pandemic generated “five years of worth of growth in five months” for Udemy’s consumer business. Its enterprise business, which serves large companies, also grew this year, he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a leading K-12 after-school tutoring services provider in China, today announced that a global growth investment firm has agreed to purchase a total of approximately US$1.5 billion of newly issued Class A common shares of the Company. Following the transaction, the investor will hold, taking into account its existing holding, approximately 8.35% of the Company's outstanding shares.