Should I Buy GOTU? GOTU 2026 Analysis

Should You Buy Gaotu Techedu Inc (GOTU) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Sell

Latest Price

2.160

1 Day change

4.35%

52 Week Range

4.560

Analysis Updated At

2026/02/04

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Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.
Not a good buy right now: price trend is still bearish (SMA_200 > SMA_20 > SMA_5) and the stock is trading below the pivot (2.252), with no clear catalyst support.
The only near-term bullish argument is “oversold + fading downside momentum,” but for an impatient buyer, the setup lacks a confirmed reversal and lacks a proprietary buy trigger.
Best stance today: avoid/new money stays out (or sell/trim if already in) until price reclaims ~2.25–2.32 with improving momentum.

Technical Analysis

Trend: Bearish structure (SMA_200 > SMA_20 > SMA_5) indicates a persistent downtrend.
Momentum (MACD): Histogram is negative (-0.00724) but negatively contracting → downside momentum is weakening, which can precede a bounce, but it’s not a buy signal by itself.
RSI: RSI_6 = 25.97 (typically oversold) → bounce potential is rising, but oversold can persist in downtrends.
Levels:
- Pivot: 2.252 (price 2.21 is below pivot = bearish bias)
- Support: S1 2.187, S2 2.147 (near-term downside reference)
- Resistance: R1 2.317, R2 2.357 (need to regain for a trend shift)
Pattern-based forward bias (provided): ~-0.87% next week expectation and only modest +0.61% next month edge → not compelling for an “enter-now” buyer.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Very low put/call ratios (OI PCR 0.17; Volume PCR 0.27) suggest call-heavy / bullish skew in options positioning.
Volatility: IV_30d 153.87% with IV percentile ~80 and IV rank ~72 → options are very expensive, implying elevated uncertainty/expectations (despite no news provided).
Activity: Today’s options volume (306) is well below the 5D/10D averages (971.8 / 760.1), while open interest is elevated (todays OI 18,594; ~81% vs avg OI) → suggests positioning exists, but fresh conviction today is muted.
Read-through: Options skew looks optimistic, but expensive IV + weak spot trend = sentiment alone is not enough to justify a buy now.

Technical Summary

Sell

Buy

Positive Catalysts

- waning downside MACD can support a short-lived bounce.

Neutral/Negative Catalysts

- Clear bearish trend (all key SMAs stacked bearishly) with price below pivot (2.252).
- Profitability deterioration: 2025/Q3 net loss widened (net income -147.1M; down -68.78% YoY) and EPS -0.91 (down -66.91% YoY).
- No news/catalysts in the last week provided to explain or reverse momentum.
- Options IV is extremely high (153.87%) → market is pricing big moves; without a catalyst, risk/reward for new longs is unattractive at current spot levels.
- No supportive flow signals from hedge funds/insiders (both neutral) and no congress trading data to lean on.

Financial Performance

Latest quarter: 2025/Q3
Revenue: 1,579,026,000 (+30.69% YoY) → strong top-line growth.
Net income: -147,121,000 (worse YoY, -68.78%) → losses widened materially.
EPS: -0.91 (worse YoY, -66.91%) → earnings trend is negative.
Gross margin: 66.08% (+2.56% YoY) → efficiency improved, but not yet translating into profitability.
Bottom line: growth is good, but the earnings trend is deteriorating, which typically caps near-term upside unless a catalyst changes expectations.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating changes or price target updates were provided in the dataset, so a “recent trend” cannot be confirmed here.
Wall Street-style pros (inferred from fundamentals provided): strong revenue growth and improving gross margin.
Wall Street-style cons (inferred from fundamentals provided): widening losses and negative EPS trend; current tape is bearish and lacks catalyst support.
Influential/political trading check: no recent congress trading data available; hedge funds and insiders are both reported as neutral (no notable recent accumulation signal).

1 Analyst Rating

Wall Street analysts forecast GOTU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOTU is 3.2 USD with a low forecast of 3.2 USD and a high forecast of 3.2 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

1 Hold

0 Sell

Hold

Current: 2.070

Low

3.2

Averages

3.2

High

3.2