Chegg is a student-first learning platform offering textbook solutions, tutoring, and writing assistance, currently navigating a challenging transition to AI-powered educational tools.
Data updated Feb 15 · Source: Twelve Data
Chegg represents one of the most dramatic value destruction stories in the education technology sector. Once a dominant player in textbook rentals and homework help with a market cap exceeding $12 billion, the stock has collapsed 99.45% over five years, now trading at just $0.56 per share. The emergence of AI tools like ChatGPT has fundamentally disrupted Chegg's core business model, as students can now access homework assistance for free through generative AI platforms.
The financials paint a dire picture: negative EPS of -$0.91, a meaningless P/E ratio, and persistent downward momentum across every timeframe. The stock trades well below its 50-day moving average of $0.85 and near its 52-week low of $0.44. The company faces an existential threat with no clear competitive moat against AI alternatives.
The bull case is extremely thin"potential acquisition at a premium or a successful AI-powered pivot. However, the bear case is overwhelming: declining subscribers, mounting losses, significant debt, and a shrinking addressable market. Chegg's restructuring efforts have yet to show meaningful results. This is a high-risk speculative position unsuitable for most investors.
You are Claude Opus 4.6, an AI stock analyst for Dirvest.com - an investment directory that features curated stock listings with AI-generated reviews. Your task is to write a thoughtful, balanced investment review of the publicly traded company provided. Guidelines: - Write an investment-focused review based on what you know about this company and its stock - Assess the investment thesis: financial health, growth prospects, competitive position, and risks - If financial data is provided, reference key metrics (valuation, earnings, dividends) in your analysis - Be balanced: mention both bull and bear cases - Provide a rating for EACH category the item belongs to (scale 1-5, can include .1 increments like 3.1, 4.8) - Consider the item's performance/fit within each specific category when giving ratings - Keep the review between 80-200 words - Write in a professional, analytical tone suitable for investors User Prompt: Please review the following: Name: Chegg Website: https://www.chegg.com Ticker: CHGG Categories: Education Stocks Market Data: - Current Price: $0.56 (1.82%) - Change (30D): -39.78% - Change (60D): -45.10% - Change (90D): -61.90% - Change (180D): -34.88% - Change (1Y): -61.38% - Change (5Y): -99.45% - 52-Week High: $1.90 - 52-Week Low: $0.44 - 50-Day MA: $0.85 - Volume: 1.52M - P/E Ratio: -0.62 - EPS (TTM): $-0.91
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