Not surprisingly, U. S. stocks were hit again on Wednesday. Among them, the Dow plunged 1164.52 points in a single day, closing down 3.57%, the biggest one-day decline since June 11, 2020; the Nasdaq fell 4.73%, the biggest decline since May 6; and the S & P 500 index fell 4.03%, also the worst one-day performance since June 2020.

The three major indices are related to the disturbance of the news side. Earlier, Fed officials continued to make hawkish remarks about their support for a 50 basis point rate hike.

To make matters worse, recently, a number of institutions have expressed pessimistic expectations for the future economy. S & P said it had lowered its growth forecast for the US economy "in view of the extraordinary number of negative shocks", while Goldman Sachs Group CEO said that "extremely punitive" inflation was a burden on the economy and that "the economy is likely to fall into recession". In its earlier World Economic situation and Outlook for 2022, the United Nations also lowered its forecast for global economic growth in 2022 from 4 per cent to 3.1 per cent.

Affected by the plunge in US stocks, most popular Chinese stocks fell on Wednesday, but NetEase, Inc youdao (DAO.US) bucked the trend and rose 13.31 per cent to close at $6.30.

It is worth mentioning that this is the third time that NetEase, Inc youdao has achieved a big rise in the last four trading days, with a cumulative increase of 40.62% since May 13.

At a time when the U. S. stock market is shaky, NetEase, Inc youdao share price rose against the trend, the strong willingness of funds to do more can be seen.

Looking back on the business performance over the past year, as a leading technology-driven education company in the industry, NetEase, Inc youdao, in the post-"double reduction" era, immediately adjusted the company's strategic focus to growth areas consistent with its own education technology expertise, including smart hardware, STEAM courses, adult and vocational education courses, education information solutions, etc.

As far as performance is concerned, NetEase, Inc's active transformation of youdao has obviously achieved good phased results.

According to the company's previously disclosed Q4 and full-year results in 2021, excluding the K9 discipline training business, the net income of Q4 NetEase, Inc youdao in 2021 reached 1.049 billion yuan (RMB, the same below), an increase of 22.6% over the same period last year, exceeding market expectations. In the same period, the company made a net profit of 31 million yuan under non-US general accounting standards, making a quarterly profit for the first time.

For the whole year, excluding the K9 discipline training business, NetEase, Inc youdao achieved a net income of 4.016 billion yuan, an increase of 58.9 percent over the same period last year. Of this total, the net income from course services was 2.441 billion yuan, up 61.3% from the same period last year; the revenue from smart hardware was 980 million yuan, up 81.6% from the same period last year; and the net income from online marketing services was 594 million yuan, up 25.6% from the same period last year.

Combined with the above sets of data, it is not difficult to see that in the turbulent 2021, NetEase, Inc youdao successfully achieved transformation and upgrading by virtue of the development line of science and technology-empowered education, and the business has basically achieved a smooth transition.

Looking forward to the future, APP of Zhitong Finance and Economics believes that NetEase, Inc youdao is very interesting and its growth potential needs to be explained.

On the one hand, the company's deeply cultivated STEAM education field is in the ascendant, as one of the leaders NetEase, Inc youdao is expected to "go to a higher level". It is understood that the current market demand for quality education is relatively scattered and the market scale has a high potential for expansion.

As for the company, NetEase, Inc youdao's chess training and programming courses have obtained positive feedback from the market. Among them, the quality star product Youdao, Inc has maintained a strong growth momentum, and Q4 sales have increased by about 130% compared with the same period last year.

It is reported that youdao is gradually opening up the full link of go learning online and offline, continuously expanding the audience range of the AI game system. In addition, the youdao vertical and horizontal team launched youdao Vertical and horizontal Chess Academy APP in Q4, which is open to all users free of charge, and further improves the after-class exercises and chess scenes.

Zhitong Financial APP believes that the success of popular styles such as Youdao, Inc and "memories of the Philippines" will provide a useful reference for the company's next innovative curriculum development.

In addition, the company's first offline store, Youdao, Inc quality growth Center, opened in Beijing in November 2021, trying to enter the offline scene to meet the diversified needs of users, which may bring new surprises in the future.

In the field of adult education, thanks to the increasing demand for courses to improve all kinds of comprehensive skills, and the market for the postgraduate entrance examination is in full swing, NetEase, Inc youdao is exploring new high-quality growth points on the basis of expanding products.

On the other hand, in the field of intelligent hardware, NetEase, Inc youdao has successively launched new intelligent hardware products such as dictionary pens, Linglibao, intelligent lamps and so on, and has achieved good sales results. It is reported that youdao dictionary pen Q4 shipments have exceeded 500000, a record high.

Market feedback is positive, not only due to the fact that youdao continues to build a moat at the content level, but also due to the company's continuous innovation in product technology. In terms of content, youdao Dictionary Pen previously reached a strategic cooperation with the Commercial Press and exclusively included Xinhua Dictionary; on the technical level, Dictionary Pen launched the writing guidance function, which relies on youdao's self-developed OCR technology to support accurate recognition of various handwritten English compositions, and with self-developed NLP technology as the underlying support, personalized AI intelligent evaluation can be realized.

Considering that the company has established a leading position in the dictionary pen market and there are still a number of new products under development, the growth potential of the business is expected to continue to unleash.

The little tender lotus has just revealed the tightly wrapped tip of the leaf, and a lovely dragonfly has come to stand on it. To sum up, the recent active funds actively long NetEase, Inc youdao, perhaps not simply out of the technical side of the game, but smart funds that NetEase, Inc youdao fundamentals accelerate better, in the US stock market environment, the company's long-term investment value is becoming more and more prominent.

NetEase, Inc youdao is undervalued, which has also attracted the attention of the head brokerage. Huatai released a report on May 18, covering NetEase, Inc's youdao for the first time and giving the company a "buy" rating, with a target price of US $12.95, which is still 106 per cent more potential than the current price.

In the future, in view of NetEase, Inc youdao business transformation is getting better, the company's growth sustainability is strong, while the long-term point of view of the stock price is still low, the current position Youdao, Inc's value ratio is very high, investors might as well do long company stocks for bargains.