Needham Remains Bullish on Udemy (UDMY)

Udemy, Inc. (NASDAQ:UDMY) is one of the best consumer defensive stocks with more than 50% upside. On October 30, Needham analyst Ryan MacDonald maintained a Buy rating on Udemy, Inc. (NASDAQ:UDMY) with an $11 price target, basing the optimistic outlook on the company’s solid Q3 adjusted EBITDA performance and revenue.

Why Udemy Inc (UDMY) Is Skyrocketing So Far In 2025?

Attributing the positive results to the company’s focus on improving its consumer subscription business, the analyst stated that Udemy, Inc. (NASDAQ:UDMY) is undergoing a strategic business model shift towards subscription-based revenue. While he expects this to slow consumer segment growth in H1 2026, the expected growth in subscription revenues in H2 2026 is anticipated to exceed the drop in transaction revenues, presenting a strong case for the company’s long-term success.

Udemy, Inc. (NASDAQ:UDMY) is a global learning company with an online platform for skill acquisition, validation, and development. It operates in two segments: Consumer and Enterprise. The Consumer segment targets individual learners, helping them attain valuable job skills and hands-on learning to excel in their professional careers. The Enterprise segment focuses on businesses and government customers, allowing them to reskill and upskill their public servants and employees.

While we acknowledge the potential of UDMY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UDMY and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.