The technology industry has been abuzz with the emergence of artificial intelligence (A.I.) and its potential to revolutionize many aspects of our lives. One company that was hit hard by this new wave of innovation is education stock Apollo Education Group, Inc., but now Bank of America (BofA) is calling it a “screaming buy.”
Apollo Education Group provides educational services through its subsidiaries, including University of Phoenix, Western International University, College for Financial Planning Institutes and Institute for Professional Development. The company’s shares have taken a hit in recent months due to the rise in A.I.-driven online learning platforms such as Coursera and Udacity which are becoming increasingly popular among students seeking more affordable options than traditional universities like Apollo Education Group offer.
However, BofA analysts believe that despite these challenges Apollo Education Group still offers an attractive investment opportunity given its strong market position and competitive advantages over other players in the space. According to their research note: “We think [Apollo] can continue to gain share from smaller competitors while also benefiting from increased demand for higher education driven by population growth”. They further noted that the company’s cost structure gives them an edge over their peers when it comes to pricing power and profitability potential going forward.
In addition to being well-positioned within the industry itself, BofA believes that there could be additional upside if Apollo Education Group were able to capitalize on emerging trends such as virtual reality or augmented reality technologies which could help make their offerings even more appealing than they already are today. Furthermore, they point out that any successful implementation would likely lead to improved customer satisfaction levels which should result in increased revenue opportunities down the line as well as better margins overall due to lower costs associated with delivering courses via digital means rather than physical ones like classrooms or lecture halls require currently .
Given all these factors combined together BofA analysts have concluded that investors should consider buying into this stock at current prices before it potentially takes off again once some of these initiatives start bearing fruit later on down the road – making it a screaming buy right now according to them!
|This education stock was hit by the emerging A.I threat but now BofA calls it a screaming buy|Technology|CNBC