The business of distance learning – online education courses offered by colleges, universities, and trade schools – is an up and down affair. On the surface it would seem that distance learning providers are doing quite well, but according to a May 12, 2005 report at the Motley Fool financial website, the stocks of companies like eCollege and SkillSoft are earning less than honorable marks in the market. There is no plausible explanation for the drop in eCollege’s stock price from $18.18 per share to $9.07 as of the date of the report since the distance learning company’s quarterly report noted a net increase in first-quarter revenue of 21% compared to the first-quarter of 2004.
Perhaps it is the still sketchy reputation of distance learning and online education that is causing investors to be shy about the companies. Internet based companies of all kinds with the exception of giants like eBay and Amazon have traditionally had rocky rides ever since the dot com debacle of the late nineties. Presumably, those trends will soon change.
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