Tag: Jefferies

. Chegg Inc. is an American education services provider offering digital textbooks, homework help, and course-related materials to college and high school students. Dan Rosensweig has been at the company's helm since 2006 and is a former president of Yahoo!. The recent rise in ChatGPT's popularity has caused a drop in Chegg's stock price, leading to a $1 billion reduction in its market capitalization. In response, Chegg released its own AI-powered cheggmate to better manage the implications of homework-assistance chatbots. With analysts raising concerns about Chegg's core business becoming obsolete due to free AI tools, their stock has been downgraded.

Chegg, a leader in online tutoring and educational services, has seen a sharp decrease in its stock after acknowledging the rise of ChatGPT as a threat to their customer base. Despite no "noticeable impact" from ChatGPT before March, Chegg has since seen a significant drop in their stock prices this year. Jefferies downgraded Chegg's stock to hold and Morgan Stanley analyst Josh Baer changed his prediction to $12 from $18. Despite this, CEO Dan Rosensweig and the team of key individuals have kept Chegg a leader in the online educational sphere.

Chegg reported quarter results on Monday and shares declined post-earnings. Artificial intelligence (AI) and ChatGPT are now the major risks that threaten the company's customer growth. Jefferies downgraded the stock to "hold" from "buy" & recommend investors to reconsider their exposure to Chegg.Source: The Company & Jefferies