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Virtual Education, Real Money

September 10, 2007, 3:58 pm

Investors’ skepticism about online education may be waning, at least in terms of the money that is flowing to those programs.

The stock price of Capella University, an online institution, has more than doubled since its initial public offering, in November, reports the Star Tribune, in Minneapolis. With the company recording a 55-percent increase in second-quarter earnings, its stock rose from $20 a share to about $50 a share this past week.

Trace A. Urdan, an analyst with Signal Hill Capital Group, in Baltimore, told the newspaper that online-education companies are doing well in general, and that investors are recognizing as much. “Capella benefited from that, even though it did better than the group,” he said. —Dan Carnevale

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