Stride (LRN) Falls Hard to Lowest Level on Faulty Glitch, Slower Growth Forecast

We recently published 10 Stocks Plunging Fast; 5 Now at All-Time Lows. Stride, Inc. (NYSE:LRN) is one of the worst-performing stocks on Wednesday.

Stride slid to an all-time low on Wednesday, as investor sentiment was dampened by an unusually slow growth outlook for the fiscal year 2026, alongside a faulty software glitch that caused an unexpected drop in enrollment during the summer.

At intra-day trading, Stride, Inc. (NYSE:LRN) dropped to its lowest 52-week price of $68.83 before trimming losses to end the day just down by 54.37 percent at $70.05 apiece.

Stride (LRN) Falls Hard to Lowest Level on Faulty Glitch, Slower Growth Forecast

Photo by Jerry Wang on Unsplash

According to the company, it experienced a major issue during a platform upgrade, causing it to miss between 10,000 to 15,000 enrollments.

“The implementations did not go as smoothly as we anticipated… This poor customer experience has resulted in some higher withdrawal and lower conversion rates than we expected,” Stride, Inc. (NYSE:LRN) CEO James Rhyu was quoted as saying.

He added that the management will fix the upgrade within a year.

Meanwhile, Stride, Inc. (NYSE:LRN) forecast sales to grow by 5 percent, notably slower than the annualized sales growth of 19 percent over the past five years.

However, Stride, Inc. (NYSE:LRN) registered an impressive earnings performance in the last quarter, jumping 68 percent to $68.8 million from $40.88 million in the same period last year.

Revenues increased by 12.68 percent to $620.88 million from $551 million year-on-year.

While we acknowledge the risk and potential of LRN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LRN and that has 10,000% 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.