Coursera's second-quarter revenue was boosted by demand for AI courses
Online learning provider Coursera Inc (NYSE:COUR) is 55% higher at $11.48 at last glance, heading for its best day ever after reporting second-quarter revenue that beat expectations. While earnings per share fell below the consensus estimate, the stock is getting a boost from strong demand for artificial intelligence (AI) learning courses, with more than 2 million enrollments in its generative AI catalog of programs.
Today's bull gap has the stock trading at levels that preceded its sharp April post-earnings move lower. What's more, the equity reclaimed support from its 100-day moving average, which began to pressure shares in early February. Now up 55.7% this quarter, COUR is still saddled with a 42% year-to-date deficit.
The options pits are exploding with activity after the event. Already today, 8,782 calls and 3,236 puts have traded hands -- 8.5 times the average daily volume already -- with the most activity at the August 10 call. Analysts are also chiming in, with BMO raising its price target to $11 and UBS adjusting down to $10.
It's also worth noting that short interest added 28.9% over the last two reporting periods, and the 13.03 million shares sold short represent 8.9% of Coursera stock's total available float. It would take bears nearly five trading days to buy back their bets at the security's current pace of trading.