Chinese concept stocks rebounded strongly with strong demand for AI products, driving the stock price of Youdao Inc ADR Class A (DAO.US) to rise nearly 7% in a single day.

On January 12, Eastern Time, Youdao Inc ADR Class A (DAO.US) stock price surged, closing up by 6.97% at $12.61, reaching over 8% intra-day at one point, with trading volume increasing simultaneously. This round of increase benefited from the improvement in the sentiment of Chinese concept stocks market and reflected the market's recognition of its fundamental improvement and AI strategy landing. Technically, the stock price of Youdao Inc ADR Class A recently broke through key resistance levels, forming a technical buying point and attracting some trend investors. Many brokerages such as Huatai and CICC have released reports optimistic about the company's transformation prospects, particularly giving positive evaluations on its AI business layout, believing that its growth momentum and profit quality are continuously optimizing. Behind the rise in stock price, the business fundamentals of Youdao Inc ADR Class A provided solid support. With the push of the "AI-native" strategy, the company has achieved profitability for five consecutive quarters, demonstrating strong growth resilience. The cumulative operating profit for the first three quarters by 2025 increased by nearly 150% year-on-year. At the same time, net revenue from online marketing services and sales from AI subscription services both reached historic highs. Specifically, in the third quarter of 2025, Youdao Inc ADR Class A achieved net revenue of 1.63 billion yuan, a year-on-year growth of 3.6%; the operating profit reached 28.27 million yuan. Meanwhile, the company's operating cash flow deficit narrowed by 31.4% year-on-year, further improving its financial health and laying a solid foundation for future sustained development. Currently, the company's positioning has shifted from "educational technology" to "learning and advertising AI application service provider" with the aim of using AI technology as the engine to deepen commercial capabilities in the two fields of learning and advertising. In terms of AI deployment, Youdao Inc ADR Class A has always insisted on "scenario implementation" as a priority. After launching the self-developed "Confucius" large model in early 2023, the company quickly applied it to software and hardware terminals such as Youdao Inc ADR Class A dictionaries and Youdao Inc ADR Class A dictionary pens to promote product AI upgrades. Recently, there has been a rise in hardware in the AI field, with OpenAI's first hardware product targeting the "pen" form factor, focusing on daily interaction and knowledge acquisition. However, Youdao Inc ADR Class A has taken the lead by launching and continuously iterating the "AI answering pen" a year ago, leading to the deep integration of AI-native hardware and educational scenarios. The latest data shows that the sales of this product have exceeded 100 million yuan, becoming a best-selling product in intelligent learning hardware, highly favored by students and families. By utilizing the "AI-native" strategy, Youdao Inc ADR Class A is focusing on advancing online courses, intelligent learning hardware, and AI for advertising, and has built a unique competitive advantage in these subfields. Analysts point out that the rise in the stock price of Youdao Inc ADR Class A this time is not only a reflection of short-term market sentiment but also a recognition of the effectiveness of its business transformation and the prospects of the "AI-native" strategy. As AI applications continue to deepen, the forward-looking layout of Youdao Inc ADR Class A is expected to gradually unleash greater value.