New Oriental Education (EDU) Stock Has Plunged In A Half Of A Year: Will EDU Rise Soon?

The stock price has tanked 85% over the past six months. This period includes April when the stock was trading at $ 14.61. However, then it started to fall at a fast pace and reached $ 1.94 in July. The latter half of 6 months hasn’t been great for New Oriental Education (EDU), as there were only horizontal movements on the price chart at the $ 2 level.

Stocks of companies that provide educational services rallied in response to news of Chinese government support for vocational schools. Thus, China seeks to become independent from other countries in relation to base technologies, moreover, it wants to improve its manufacturing sector. The move is expected to lead to a revaluation of both vocational and higher education shares, which declined sharply in July due to the suppression of the private tutoring business. As for New Oriental Education, which suffered a loss of two-thirds of its market value, it will also grow.