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Stock Alert: China Online Education Gains 22%

Shares of online English language tutor China Online Education Group (COE) increased 22.19% or $3.95 on Monday to hits 52-week high of $23.46. The stock closed the day's trade at $21.75. COE swelled nearly 300% over the last two months.

In December, the Chinese online education platform had reported third-quarter results.

Net loss for the third quarter narrowed to RMB5.3 million (US$0.7 million), from net loss of RMB90.4 million for the same quarter last year.Net loss per ADS was RMB0.26, compared with loss per ADS of RMB4.50 for the same quarter last year.

Adjusted loss per ADS also narrowed to RMB0.09 (US$0.01), from loss per ADS of RMB4.05 for the same quarter last year.

Revenue for the quarter jumped 35% year-on-year to RMB409.2 million (US$57.2 million), helped by increase in the number of active students, students who booked at least one paid lesson. The number of active students grew 23% year-over-year in the third quarter.

In the quarter, China Online Education had launched the company's flagship program, Classic English Junior, a mobile-friendly, interactive curriculum for levels 0 to 2.

By November last year, the company had achieved the milestone of delivering more than 100 million one-on-one online English lessons, including free trial lessons, from inception in 2011.

For the fourth quarter, the company expects revenue growth of between 29.2% and 30.8%.

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