I’m not a stock analyst and I don’t invest in education stocks because of other work I do, but K12 Inc.’s stock dropping 23 percent yesterday on that NYT story seems like an overreaction. Sure there is an enthusiasm bubble around ed tech and online right now but K12 is established and has a diverse revenue stream and operations (think language programs with Middlebury, AP tools, etc…) and online learning is here to stay in some form. More likely the stock drop is either more fundamentally a reaction to speculation like this, concerns about pricing pressure that will emerge on K12 over time in the states as policies change, or it’s an overreaction to a news story that offered little new information for insiders who follow the issue. K12 (ticker LRN) is down again today and shortsellers seem to be having a field day. We saw this movie before on for-profit colleges and those stocks basically recovered as a class (to be clear – in terms of perception and seem to move more based on underlying valuation of individual companies today).