Udemy (UDMY) Is Up 6.6% After New AI Coding Series Launch and Leadership Appointment - What's Changed

• Earlier this week, Udemy unveiled its new Vibe Coding Series, expert-led, AI-focused courses designed for practical skill application, and announced the upcoming Model Context Protocol Server, enabling organizations to seamlessly integrate personalized learning into existing workplace AI tools.
• The rapid rollout of these AI-enabled products, paired with the appointment of Sarah Healy as Chief Skills and Learning Officer, highlights Udemy’s focus on embedding workflow-driven upskilling and scaling talent development for a global, tech-oriented workforce.
• We'll examine how the integration of workflow-embedded AI learning tools could impact Udemy's investment narrative and future growth prospects.

The latest GPUs need a type of rare earth metal called Dysprosium and there are only 25 companies in the world exploring or producing it. Find the list for free.

Udemy Investment Narrative Recap

To be a shareholder in Udemy, one needs to believe in the platform's ability to capitalize on the accelerating demand for AI-powered skill development and workforce upskilling. The recent Vibe Coding Series and MCP Server announcements give Udemy a chance to address its main catalyst, a shift toward recurring subscription revenue via differentiated AI offerings, though these developments have yet to materially address near-term risks around pressured net dollar retention and ongoing transition challenges.

Among recent announcements, the launch of the Model Context Protocol Server stands out, directly supporting Udemy’s push to integrate learning into workplace AI tools, a move intended to foster engagement and drive incremental enterprise revenue, which is central to the company’s growth narrative given ongoing headwinds in retaining and expanding customer spend.

Yet for investors, the bigger question is whether Udemy can overcome execution challenges such as diminishing net dollar retention in the months ahead...

Read the full narrative on Udemy (it's free!)

Udemy's narrative projects $911.1 million revenue and $75.7 million earnings by 2028. This requires 4.9% yearly revenue growth and a $144.4 million increase in earnings from -$68.7 million today.

Uncover how Udemy's forecasts yield a $10.12 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided five fair value estimates for Udemy ranging from US$6.02 to US$11.64 per share. While these opinions reflect diverse expectations, the company’s push for recurring enterprise revenue as a growth catalyst puts the focus back on long-term fundamentals amid evolving trends in corporate learning.

Explore 5 other fair value estimates on Udemy - why the stock might be worth as much as 56% more than the current price!

Build Your Own Udemy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Udemy research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Udemy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Udemy's overall financial health at a glance.

Interested In Other Possibilities?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

• AI is about to change healthcare. These 25 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Outshine the giants: these 20 early-stage AI stocks could fund your retirement.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com