Internet giant buys online education platform moves to rush into online education industry

Recently, Amazon announced the acquisition of online math education service provider Tenmarks to continue to expand its online education sector, and Google is testing its Consumer-to-consumer online education platform, Google Helpouts. The rush of giants into the online education industry reflects a strong bullish outlook for the industry.

Last week, a number of Wall Street agencies, including Morgan Stanley, were bullish on the company's latest performance in the future, and said that a good future investment in an online education platform would help improve the company's market competitiveness. January 27, good future announced strategic investment in maternal and child services Enterprise Baby tree, layout online preschool education is further proof of Wall Street institutions ' forecasts.

Analysts expect the global online education market to enter a new stage of development as the recognition of online education increases. The listed companies engaged in online education are ushering in new opportunities. Asia is the world's fastest-growing online education market, with a growth rate of 17.3% per cent and is expected to reach $11.5 billion trillion in Asian markets in 2016, with China ranked tenth in the world, according to a report by the US Market Research institute ambient Insight.

Giants scramble to get involved in the Nuggets

The online education industry originated in the United States, in the United Kingdom, the United States and other developed countries have been very popular, the U.S. now has about 4 million registered online education students, many well-known universities have already opened an online education platform. Based on the rapid development of the Internet, the online education market is now growing by leaps and bounds, and major internet giants are "targeting" the market.

Amazon's move to buy an online company, Tenmarks, is trying to extend its Kindle tablet and content applications to classrooms, according to media reports. Through this acquisition, Amazon will focus on the development of educational content and related applications. In fact, Tenmarks has been the focus of startups and media companies, an online education company that helps produce math courses from kindergarten to high school, offering personalized online math teaching and practice for teachers, students at the compulsory stage, and parents of students. "Amazon intends to develop a wealth of educational content and applications that can be used on multiple platforms," said the head of Amazon's Kindle department in a takeover statement. "In the field of online education, the use of multiple platforms can enhance students ' interest in learning."

All along, in the development potential of the emerging IT industry, has never been less than Google such a visionary giant figure, online education industry is no exception. Google's online education platform, Helpouts, is a social network for the idea of an online education platform, on this platform, through the cloud storage, video, Google + and other technologies, many of its products can be integrated into the helpouts, so that can achieve "everyone can be a teacher" education goals.

As Amazon, Google and other internet giants have entered the online education market, the development of the market is bound to produce a huge impetus to "ferment", so that entrepreneurial enterprises, Internet enterprises, venture capital entered successively.

Coursera, the famous American online education website, recently announced a refinancing of 20 million dollars to further expand the online education market. According to a study by mainland brokerages, in the field of venture capital, about 23 companies gained millions of to tens of millions of dollars in venture capital last January-August, showing that internet education ushered in a rush of investment and financing.

Institutions bullish on related stocks

Good future January 22 released the unaudited fiscal year 2014, as of November 30, 2013, the third quarter of the financial results, the company when the Ti Ying closed to 73.5 million U.S. dollars, an increase of 50%, the third quarter net profit of 14.6 million U.S. dollars, an increase of 85.6%.

Later that day, Morgan Stanley issued an investment report to maintain a "overweight" rating in the future. BNP Paribas also announced the initial rating of a good future as a "buy".

U.S. investment company Days Hao Capital to maintain a good future "buy" rating, the company's report said, because now is the student winter vacation, the good future winter course enrollment hot, which means that the good future is likely to launch a strong fourth quarter results. The report also predicts that while most of the revenue from the current good future comes from Beijing and Shanghai, revenue in other cities is rising faster and there is further room for market penetration. The report believes the eventual fourth-quarter revenue from the good future is expected to be higher than the 78.9 million trillion dollars that Wall Street currently expects.

Since this year, the good future share price has risen 11.2% to 23.52 dollars.

In addition, New Oriental recently released the second quarter of fiscal year 2014. Earnings showed that the company's total net revenue of 208.3 million U.S. dollars, an increase of 25.6% year-on-year, more than the market expectations. U.S. investment company JG Capital issued a study, reiterated that the new Oriental stock rating of "overweight", and further optimistic about the company's future development in the field of online education.

New technology leads industry development

Compared with the online education that has been developed for several years, mobile internet education and intelligent phonetic education are still relatively unfamiliar fields. The mobile internet market is expected to reach $259 billion trillion in 2014 and a breakthrough of $385 billion in 2017, and the mobile Internet education sector as a niche in the mobile internet sector also has huge potential for growth, according to a recent study by PwC.

In addition, the Intelligent Voice Technology, network video communication technology and other new technologies are also constantly into the field of online education, and further accelerate the pace of development of the industry. Market participants predict that the online education market development will continue to show a blowout situation. In the future, with the further improvement of Internet penetration and the cultivation of online education consumption habits, the online education market in mainland China is expected to expand rapidly, and the market in 2015 is expected to reach a scale of 174.5 billion yuan.

Industry insiders believe that online education industry in the future combined with online value-added services, platform Commission, network advertising, software monthly and other rich profit model, using its direct face to the end consumer advantages, coupled with the application of new technologies, the major online education enterprises to find the right positioning and charging mode, it is expected that the profitability will be very prominent.