When the Smoke Clears and the Dust Settles, Fundamentals are Investors’ Safe Heaven

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The current frenzied “wild ride” in the market (a.k.a. GameStop phenomenon) has left so many institutional investors baffled, as short sellers who were not fast enough to catch up got crippled left and right. It is true that community-driven momentum can result to massive gains, but wise investors know one thing that as soon as the surge ends – their investments could take a quick nosedive. And unless the “star” behind the frenzy’s company holds strong fundamentals to back it up the probability of its shares plunging into the abyss is almost a no-brainer a resounding “thud”. 

Enter GSX (GSX Techedu Inc. NYSE: GSX; a technology-driven education company and a leading online K-12 tutoring service provider in China). GSX stock price soared 90% over the past week, 151% over the past month, and 281% over the past year. Can you see the trend here? A potential frenzied “wild ride” in the making? Just another phenomenon flooding the market at the moment, some analysts say. But at the end of the day, these trends are fleeting and don’t last. Just as the ride has to stop somehow, the short-sellers cover their positions and the stocks come crashing back to earth, almost always with the same force as when they soared. 

Sandalwood data helps investors uncover the fundamentals behind GSX and around 2000 other globally listed stocks. 

Sandalwood tracks App installment of Gaotu, the provider for K-12 tutoring courses which accounts for 89% of GSX Techedu’s total revenue. On top of the amount of App installation, Sandalwood provides demographic information — namely, city tier, age group, and gender. We track GSX and Weishi, two other main Apps under the company as well. As an added bonus, Sandalwood provides information on how GSX Techedu performs against its 3 major competitors:  EDU, TAL, Xueersi. 

Please DM or contact service@sandalwoodadvisors.com for further details.