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"Splashing Wealth and Prosperity" Strikes Oriental Selection to Compete with Gaotu, Sales Increase 250 Times, Stock Price Increase 35%

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In recent days, the event of Dong Yuhui, the anchor brother of Tiktok account operator "Hand Tear", which was selected by Dongfang, has been a hot search for several times, and has gradually evolved into a "battle of words" between Dong Yuhui's fans and the company's employees.
At the time of internal strife in Dongfang Zhenxuan, it allowed its competitor Gaotu to find a "bargain", and a large number of netizens flooded into Gaotu's live broadcast room due to this storm, causing its sales to skyrocket by 250 times. In the previous five trading days, Gaotu's stock price increased from $2.64 to the latest $3.59, with a cumulative increase of over 35%.
Fans demand that Gaotu poach Dong Yuhui
In recent days, the "Dong Yuhui Essay" incident has repeatedly made it to the hot search. At the same time as the incident escalated, the stock price of Dongfang Zhenxuan also continued to decline.
The cause of the incident was that the editor of Dongfang Zhenxuan claimed that most of the essays were created by the copywriting team, not all of them were by the anchor Dong Yuhui. Some fans of Dong Yuhui believe that this move is denying Dong Yuhui's contribution to Eastern Selection.
With various dissatisfaction towards Dongfang Zhenxuan, over 600000 people flooded into the live broadcast room of their friend "Gaotu Jiapin". Many fans demanded that Gaotu poach Dong Yuhui, leading to the hot topic of # Dongfang Zhenxuan's backyard catching fire with Gaotu #.
Gaotu has also responded positively to this. Founder Chen Xiangdong made his first appearance in the live broadcast room, sharing his entrepreneurial journey and responding to the topic of poaching Dong Yuhui. Chen Xiangdong said, "Dong Yuhui is not used for poaching, but for love.". In addition, Chen Xiangdong also expressed that Gaotu cherishes every talent.
Chen Xiangdong also posted a video specifically stating, "Many friends were crying with joy, and there were also many friends who came to encourage me. They sent me messages saying that the persistence and persistence of Gaotu Jiapin have finally paid off."
Live broadcast room sales skyrocketed by 250 times
On the evening of December 13th at 9 o'clock, the number of online viewers in the Gaotu Jiapin live broadcast room reached a new high of 30000 for the first time. That night, Gaotu Jiapin became the first in the list of Tiktok Eating All Over the World.
Faced with a swarm of fans, anchor Yao Yao said, "I'm flattered." The two anchors urged fans to place orders rationally and not brush gifts. Anchor Haotian has a sharp and concise message, and his exit is just a golden sentence, earning him the nickname of "second son-in-law" by fans.
Previously, Gaotu Jiapin had a long-term fan base of 320000 people. The number of people began to rise on December 11th and experienced an outbreak on the 13th. As of the time of publication, the number of fans in the live broadcast room has increased to 590000.
According to data from Cicada Mama, on December 13th, Gaotu Jiapin gained 167000 followers, with 4.954 million views and sales of approximately 2.5-5 million yuan. A week ago, the live streaming room had only 15000 viewers, with sales of approximately 10000 to 25000 yuan. Currently, sales have skyrocketed 250 times.
The market value once surpassed that of New Oriental
In the fields of education and e-commerce live streaming, Gaotu has been under the guidance of New Oriental. Chen Xiangdong, CEO and founder of Gaotu, was once the CEO of New Oriental. After leaving New Oriental, he founded Gaotu, which once surpassed New Oriental in market value.
Gaotu Jiapin started live streaming on December 24, 2022, and belongs to the full category life live streaming room. The style of the anchor and the layout of the live broadcast room are highly similar to those of Dongfang Zhenxuan, and the anchor mainly comes from Teacher Gao Tu. The background of the Gaotu Jiapin live broadcast room is also Chen Xiangdong's personal image, which is highly similar to Yu Minhong.
Chen Xiangdong intends to lead the live broadcast business of Gaotu e-commerce in person. He entered Tiktok in January 2023, and the introduction office marked "CEO of Gaotu Jiapin". The video content mainly focuses on topics such as growth, motivation, workplace, and entrepreneurship, with a similar personality and content style to Yu Minhong.
But since its launch, the live broadcast of Gaotu Jiapin has been mediocre, with only eight people watching online when the number of viewers was low. Until the crisis of "essay writing" by Dongfang Zhenxuan broke out, this "overwhelming wealth and prestige" flowed towards Gaotu Jiapin.
Can the soaring stock price and high road also lead to successful transformation
In the secondary market, the stock price of Gaotu has increased from $2.64 to $3.59 in the past 5 trading days, with a cumulative increase of over 35%.
According to the financial report, in the third quarter of 2023, Gaotu's revenue was 789 million yuan, a year-on-year increase of 30.2%; The net loss was 57.66 million yuan, a year-on-year decrease of 6%.
As of now, education and training services, especially non disciplinary tutoring and other traditional learning services, still occupy an absolute advantage in Gaotu's business structure. After the rise of "bilingual e-commerce", Dongfang Zhenxuan's stock price skyrocketed due to its valuation logic changing from "education and training company" to "live streaming e-commerce enterprise". Now, can Gaotu replicate the same path?
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