CHGG - Bear Cave Issues Report On Chegg Says Company Is 'Headed To Zero' | Benzinga
Chegg, Inc. (NYSE: CHGG) shares have fallen nearly 60% over the past year, and a report by Edwin Dorsey’s "The Bear Cave" released on Thursday, suggests that AI-powered homework helpers could put further pressure on the company.
What Happened: Chegg’s popularity grew during the pandemic when students around the world began learning through digital environments and online classes, and the service boasted 8.2 million subscribers in 2022.
However, the recent rise in AI-powered homework solutions has proven to be a challenge to Chegg’s paid-subscription business model, and Dorsey believes that it could lead to the downfall of the company.
"In short, The Bear Cave concludes that Chegg is a billion-dollar company headed ...