Vanguard Cuts Gaotu Techedu Inc. (GOTU) Holdings Slightly

Gaotu Techedu Inc. (NYSE:GOTU) is among the best education stocks to buy right now. During the first quarter, Vanguard Group Inc. reduced its holding in the shares of Gaotu Techedu Inc. (NYSE:GOTU) by 1.8%. According to the recent disclosure with the SEC, the firm now owns 5,456,660 shares of the company’s stock following the sale of 99,426 shares, which represents 2.10% of its ownership.

Recently, Gaotu Techedu Inc. (NYSE:GOTU) delivered a stellar performance that many believe is more than just a one-time occurrence. During the earnings call, much of this success was attributed to innovative offerings, improved teaching service quality, and the expansion into fresh traffic platforms. This growth momentum, which is here to stay, is powered by AI.

The company has made significant efforts to enhance its customer service response through AI assistant interactions, particularly automated Q&As and more accurate user profiling. Scale-driven operating leverage impacts and the sustained optimization of marketing expenditure are two of the many reasons to believe in Gaotu Techedu Inc. (NYSE:GOTU).

Gaotu Techedu Inc. (NYSE:GOTU) is a Chinese data-driven education company that was incorporated in 2014. The company’s core offerings include learning services, educational content, and digitalized learning products.

While we acknowledge the potential of GOTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.