2024-02-06 18:07:48 ET
Summary
- Chegg, an online education company, has seen a significant decline in its stock price, down 57.3% since August 2022.
- The company's financial results for Q4 of the 2023 fiscal year showed a drop in revenue and missed earnings forecasts.
- Chegg's management is not optimistic about the near-term outlook, with lower revenue and negative net profits expected for Q1 of the 2024 fiscal year.
One of the downsides to investing in technology related firms is that conditions can change rather quickly. Companies that were once thought to have a fantastic moat and that investors could count on for growth in perpetuity, can start seeing weakness and decline in price rather quickly. A great example that I could point to in this regard is online education company Chegg ( CHGG ). Back in August of 2022, I found myself taking a bullish stance on the firm. I wasn't completely sold on it, but I did say that it was a ‘decent’ play on promoting academic achievement. Growth leading up to 2022 had been robust, though there was some weakness developing throughout that year. Long term, I felt as though the business offered upside, even though shares were not as cheap as I normally would have liked....
Read the full article on Seeking Alpha
For further details see:
The Steep Learning Curve Chegg Is Trying To Climb