Coursera, Inc. (COUR): A Bull Case Theory

We came across a bullish thesis on Coursera, Inc. on Thanh’s Value Investing Blog’s Substack by Thanh. In this article, we will summarize the bulls’ thesis on COUR. Coursera, Inc.'s share was trading at $6.07 as of February 4th. COUR’s forward P/E was 13.33 according to Yahoo Finance.

Coursera, Inc. provides online educational services in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally.  Coursera, Inc. (COUR) operates in an EdTech sector that remains deeply out of favor, as investors broadly fear that generative AI has rendered the original MOOC model obsolete, a concern reinforced by high-profile failures like Chegg.

However, this pessimism fails to distinguish Coursera’s differentiated positioning, and the market is arguably mispricing the company by grouping it with skill-based peers that are far more exposed to AI-driven disruption. Coursera’s business is at an inflection point, where generative AI acts as both a threat and a catalyst, with the net impact skewed positively for its core customer base. At a share price of roughly $8.40 at the time of analysis, the stock offers an attractive long-term risk/reward profile.

Coursera operates a two-sided marketplace connecting leading universities and enterprises such as Google and Microsoft with individual learners and enterprise clients. Its model is built around credentials and structured learning paths, particularly for “Career Switchers” and “Academic Supplementers,” who value recognized certifications and applied, project-based learning.

Unlike skill-focused platforms such as Udemy, which primarily serve just-in-time problem solvers vulnerable to AI substitution, Coursera’s credential-led value proposition remains difficult for AI to replicate. Generative AI does not provide curricula or employer-recognized credentials, and instead enhances Coursera’s offering by improving learning efficiency, completion rates, and portfolio quality for serious learners.

Financially, Coursera trades at a low EV/FCF multiple, supported by a substantial net cash position that provides a meaningful valuation floor. Management is executing on AI-native product development, faster content creation, pricing optimization, and enterprise fixes, while demand for micro-credentials and reskilling continues to grow. As AI-driven job displacement creates new waves of career switchers, Coursera is positioned not as a casualty of AI, but as a long-term beneficiary, setting up a potential narrative shift and meaningful upside from current levels.

Previously, we covered a bullish thesis on Coursera, Inc. (COUR) by Unemployed Value Degen in November 2024, which highlighted the company’s undervaluation, strong user growth, resilient cash position, and AI-driven credential opportunity. COUR’s stock price has depreciated by approximately 23.16% since our coverage. Thanh shares a similar but emphasizes Coursera’s differentiated positioning in AI, credential-led offerings, and long-term risk/reward profile.

Coursera, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held COUR at the end of the third quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of COUR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COUR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.