New Oriental Education is a big company that helps people learn and prepare for tests. They recently reported how much money they made in the past three months, which was more than expected. However, they did not make as much profit per share as people thought they would, so their stock price went down. The company is still growing and adding more schools and students, but some investors are worried about the future. Read from source...

- The title is misleading and sensationalized. It does not reflect the overall positive performance of New Oriental in the third quarter, nor the growth potential for the fourth quarter. A more accurate title could be "New Oriental Education Shares Drop Despite Strong Q3 Results".
- The article focuses too much on the missed earnings per share and the drop in shares, while downplaying the revenue beat and the increase in operating income. This creates a negative impression of New Oriental that is not supported by the facts. A more balanced approach would be to highlight both the challenges and the achievements of the company.
- The article uses vague terms like "educational new business initiatives" and "livestreaming e-commerce business" without explaining what they are or how they contribute to the revenue growth. This makes it hard for readers to understand the innovation and diversification strategies of New Oriental. A more informative approach would be to provide examples or details of these new businesses and their impact on the market.
- The article quotes Michael Yu, but does not mention his position or credibility as the Executive Chairman of New Oriental. This makes it seem like he is just a random employee or customer who has an opinion on the company's performance. A more transparent approach would be to introduce him and his role in the introduction or conclusion of the article.
- The article does not provide any context or analysis of why the adjusted EPS fell short of the street view, nor what factors may have influenced it. This leaves readers with unanswered questions and a sense of confusion. A more analytical approach would be to explore possible reasons for the earnings discrepancy, such as changes in tax laws, currencies, regulations, or competition.

There are several factors to consider when evaluating the performance of New Oriental Education & Technology Group, Inc. (EDU) shares in the market. Based on the article provided, here are some key points to keep in mind:

1. Revenue growth: The company reported a 60.1% year-over-year increase in total net revenues for the third quarter of 2024, beating the street view of $1.105 billion. This indicates that the demand for New Oriental's educational services is strong and growing.

2. Adjusted EPS miss: The company missed the street view of adjusted earnings per share (EPS) by 6 cents, reporting 63 cents instead of the expected 79 cents. This may have caused some investors to sell their shares, resulting in a dip in EDU's stock price.

3. Expansion and diversification: New Oriental is expanding its business through new initiatives such as overseas test preparation, overseas study consulting, non-academic tutoring courses, and livestreaming e-commerce. This expansion may contribute to the company's future growth potential, but also increases risks associated with operating in new markets and managing diverse operations.

4. Regulatory environment: The Chinese education sector has been subject to regulatory changes that may affect New Oriental's business operations and profitability. For example, in September 2021, China announced a sweeping overhaul of its private tutoring industry, which could impact the company's revenues from non-academic courses.

Based on these factors, here are some possible investment recommendations:

a) Buy EDU shares at current prices (around $74.27), as they offer a significant discount compared to their recent high of over $130 per share in November 2021. This may be an opportunity for long-term investors who believe that the company's fundamentals are strong and its growth potential is not fully reflected in the stock price.

b) Sell EDU shares if they reach or exceed $85 per share, as this would represent a 13% increase from the current price and may indicate that the market has overestimated the risks associated with the company's expansion and regulatory environment. In addition, reaching this level could signal a technical resistance level that might cause the stock to pull back.

c) Hold EDU shares if you already own them and believe in the company's long-term growth prospects, but be prepared for volatility due to the factors mentioned above. You may want to consider averaging down your cost basis by buying more shares at lower prices if