NEW YORK, July 31, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating claims on behalf of investors who purchased shares of 2U, Inc. ("2U" or the "Company") (Nasdaq: TWOU).
On July 31, 2019, after the close of trading, educational-technology company 2U disclosed its financial results for the quarter ended June 30, 2019. The Company's founder and Chief Executive Officer Christopher "Chip" Paucek stated "As we deliver our full portfolio of educational offerings to new and existing partners, we are also setting 2U on a defined path to profitability by tempering short-term growth projections and leveraging our scale to drive greater operational efficiencies across the business."
According to the Motley Fool, during "2U's earnings conference call, Paucek explained that the company is enduring an 'evolving market dynamic [that] creates some short-term pressure,' particularly with more competition from regional online-education platform providers. This necessitates an expectation for smaller programs and a slower program launch cadence."
Reportedly, at least six analysts lowered their ratings on the stock. According to Marketwatch, "among the challenges for 2U are expectations for smaller programs, increased competition, and the potential for regulatory changes to impact the ability of California residents to enroll in distance-learning programs in other states. 'This is clearly a breaking of the company's model and we expect shares to be under material near-term pressure as the company readjusts for a more competitive world,' wrote Macquarie's Sarah Hindlian, who downgraded the stock to neutral from outperform. 'It remains difficult to find even slowing-teens growth and scaling margins for this price.'"
On July 31, 2019, 2U shares declined $23.70 per share or approximately 65%, on over 50 times the average trading volume of 2U shares.
If you purchased 2U shares, and would like to discuss our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
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SOURCE Kaplan Fox & Kilsheimer LLP