Why Is Udemy (UDMY) Stock Rocketing Higher Today

What Happened?

Shares of online learning platform Udemy (NASDAQ:UDMY) jumped 5.9% in the morning session after the company announced its Board of Directors approved a $50 million share repurchase program. 

The program, which is effective immediately, authorizes the company to buy back its own common stock. Share repurchase programs are often viewed positively by investors as they can reduce the number of shares outstanding, potentially boosting earnings per share. Furthermore, such a move typically signals that the company's management believes the stock is undervalued and has strong conviction in its future growth prospects. According to the press release, the board's decision reflects a "strong conviction in Udemy's ability to capture this significant growth opportunity while delivering returns to our shareholders.".

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What Is The Market Telling Us

Udemy’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 9 days ago when the stock dropped 2.9% on the news that the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. The market-wide downturn was driven by a weak ISM Manufacturing report and rising bond yields. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations.

September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision. This broader negative sentiment overshadowed positive company-specific developments for Udemy. On the same day, the company announced the appointment of a new Head of Content, Instructor & Creator Strategy.

Udemy is down 13.8% since the beginning of the year, and at $7.11 per share, it is trading 29.7% below its 52-week high of $10.10 from February 2025. Investors who bought $1,000 worth of Udemy’s shares at the IPO in October 2021 would now be looking at an investment worth $258.36.

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