Chegg's Growth Threatened by ChatGPT and A.I.
TL;DR Summary
Chegg CEO Dan Rosensweig admitted on an earnings call that the company's new customer growth rate has been impacted by the popularity of OpenAI's ChatGPT chatbot, which is taking market share from Chegg's online learning platform. Chegg's stock fell 45% at the market open on Tuesday. Chegg has attempted to reconcile by partnering with OpenAI to launch its own chatbot, CheggMate, but it has not yet been launched. Multiple Wall Street analysts have slashed their price target on the stock in reaction to Chegg's commentary.
- Chegg stock sinks after CEO says ChatGPT hurt growth Yahoo Finance
- Chegg drops more than 40% after saying ChatGPT is killing its business CNBC
- Edtech Chegg tumbles as ChatGPT threat prompts revenue warning Reuters
- Chegg shares fall by half as warning over ChatGPT hits Pearson Financial Times
- Chegg could be in big trouble as ChatGPT and A.I. threaten growth, Jefferies says CNBC
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