September 10, 2007
Virtual Education, Real Money
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
Posted on Monday September 10, 2007 | Permalink |Comments
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Capella University offers a wide variety of degrees for working professionals. This proves there is a place for all types of institutions of higher education.
William Allan Kritsonis, PhD
— William Allan Kritsonis, PhD Sep 10, 11:59 PM #
Wow! I’m glad to see a positive comment from a PhD. I am a tenure-track faculty member at a midwestern community college and I have been looking into online doctoral programs. Its is difficult making the decision to enroll when there is so much negative press about these programs.
Thank you!
— HWY Sep 11, 07:50 AM #
This is not shocking news for me. I expect for Capella U. to continue to do great things, while setting the example on how online university should operate and showing traditional programs that online programs are here to stay. I completed my PhD from Capella Univ. I know that my education was well worth it and I feel that my education was just as good as any other university online or not. I have degrees from Hampton, Radford and Rutgers. Capella U. was just as challenging as those other universities. Those that feel threaten by online programs need question where the true threat is coming from. Maybe online programs are starting to not only dip into traditional programs investment pockets but maybe online programs are actually dipping in the minds of learners.
Darius Cooper, Ph.D.
— Dr.Darius Cooper Sep 11, 08:42 AM #
The “wake up call” to offer more online courses and degree programs for traditional universities has arrived not in the form of dropping enrollment or student requests for online courses, but via the pocketbook: schools like Capella and Univ. of Phoenix are drawing away revenue, and this DOES get the attention of even die-hard traditionalists.
— Lee Allen, Ed.D Sep 11, 08:48 AM #
I, too, am a PhD Capella grad and I can’t believe that I failed to buy stock in what I think is a great enterprise! I attended Ohio State and the University of Colorado, and my Capella experience was just as rigorous as those venerable institutions. Capella provided a very flexible way for me to earn an advanced degree when other colleges couldn’t accommodate my schedule. I don’t think Capella will compete with Ohio State and other large universities, at least not at the moment, but it certainly has filled a need and may impact smaller, less flexible colleges.
— Anne Loochtan, PhD Sep 11, 09:17 AM #
It certainly challenges what it means to achieve a doctorate. I watch my colleagues taking a few months off and finishing off a year or two of part-time study with no real original research and ending up with a “PhD,” while some of the students I started (traditional) graduate school with 14 years ago are still trickling to the finish line after many, many years of hard work. It’s a different ball game, that’s for sure.
— Dr. A Sep 11, 09:46 AM #
I have taught for distance education since 1995. I came in early because I envision that we can become the future of education. We are accessible; we have high quality faculty; and we have motivated, adult learner graduate students. A paradox is that rather that distance – we experience engagement with our students. I did not expect to find quality in learners and feared that I might find people who couldn’t get into graduate school to teach or learn. What a great surprise. I don’t have the courage of our learners to maintain fully time jobs and families AND come back to high quality educational experiences. These students have great life experiences and seek to better themselves.
I now teach for Capella and find the academic model to much better developed than where I have previously taught. I think we have the opportunity – with our learners and faculty and the support of our administrators – to take the next leap forward in truly transforming people to be the practitioners and scholars they seek to be.
— Will Wilson, PhD Sep 11, 10:59 AM #
Having been associated with several online gradute decgree programs, I am all too well aware that the quality and academic rigor vary widely among them.
— JS, PhD Sep 11, 01:19 PM #