Chegg shares drop more than 40% after company says ChatGPT is killing its business
Summary
James Tahaney loads textbooks on to a pallet in preparation for shipping at the Chegg warehouse in Shepherdsville, Kentucky, April 29, 2010. Chegg shares tumbled after the online education company said ChatGPT is hurting its growth. "In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups," CEO Dan Rosensweig said during the earnings call Monday evening. "However, since March we saw a significant spike in student interest in ChatGPT. We now believe its having an impact on our new customer growth rate."
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Education Software
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Chegg
$500M to $1B