After it warned of ChatGPT threat, education services provider Chegg’s stock prices dropped drastically resulting in nearly $1 billion market capitalization loss. Chegg CEO Dan Rosensweig stated an unexpected spike in student interests towards ChatGPT since March. Chegg responded to this growing trend by launching their own AI powered cheggmate at a time when educators were struggling to understand the implications of homework assistance chatbot. As analysts are worried about Chegg’s core business becoming obsolete by free AI tools, Brent Thill from Jefferies downgraded the stock.
Chegg Inc. is a U.S. education services provider, headquartered in Santa Clara, California. The company serves college students, high school students, and professionals, through its websites, applications, and services. It provides digital textbook services, help with homework and study materials and courses, since its creation in 2006.
Dan Rosensweig is the current CEO of Chegg and was a president of Yahoo! Inc in 2003. Rosensweig spent fifteen years at publishing companies, such as CNET, Ziff Davis and Red Herring as senior executive. He earned his Bachelor of Science degree in business from the University of Maryland, College Park and his Master of Business Administration from University of California, Berkeley. Rosensweig has also served on numerous boards of other publicly traded companies such as Hewlett-Packard, Glu Mobile and Activision.
