Corrections are commonplace in the stock market but it is sometimes important for investors to take a closer look and see if it could be a buying opportunity.
China-based 17 Education & Technology Group Inc (NASDAQ: YQ) is one such stock. It has corrected quite sharply in recent days. The education technology company is best known for providing an integrated “in-school + after-school” model to educational institutions. Earlier this month, 17 Education announced its financial results for the fourth quarter and for the full year 2020.
The company managed to generated revenues of as big as $74.6 million for the fourth quarter, which reflected a year-on-year rise of as high as 153.1%. In the quarter, 17 Technology managed to generate revenues of as much as $71.6 million from its K-12 online tutoring services alone. That reflected a year-on-year rise of a staggering 163.1%. Despite the commendable performance, the stock has corrected, and hence, it might be a bit too early to write off the 17 Education & Technology Group stock.