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TAL education group is an education services company that primarily focuses on K-12 students in China. It owns and operates more than 800 learning centers across China that were significantly impacted by the Covid-19 induced restrictions. Unfortunately for TAL stock, it has an ineffective online presence in a market that is highly competitive.
Earnings results for the company have naturally taken a remarkable hit from the pandemic. The lack of online exposure has cost the company dearly when the online K-12 education market in China is booming.
The contribution of the company’s online app called Xueersi has risen by roughly 9% in its most recent quarter. However, its performance pales in comparison to competitor apps such as VIPKID and Zuoyebang. Therefore, there is little upside to investing in the stock at this time.