Chegg (NYSE: CHGG) is a direct-to-student, connected learning platform. The company generates revenue by selling subscriptions that give students access to resources on its website.
Those resources are the No. 1 reason I am bullish on this stock. The value of its resources is not only in its quantity but also in its durability. Similar to a company like Netflix (NASDAQ: NFLX) , it is Chegg's content that attracts customers and keeps them as customers.
Just so we're clear, Chegg's content is a lot different from Netflix's. As part of a subscription to Chegg, students get the right to ask 20 questions per month regarding the online tutorials it produces and those questions get answered by subject matter experts. For instance, in a business tutorial on financial spreadsheets, a question might arise like, "how do you calculate a net profit margin?" The question and answer (Net income divided by sales) then become viewable for all subscribers to Chegg now and in the future.
For further details see:
The Biggest Reason I'm Bullish on This Supercharged Growth Stock