Chegg CEO calls 48% stock plunge over ChatGPT fears extraordinarily overblown
Summary
The shares rose as much as 8% in extended trading during Rosensweigs TV interview, which followed the historic drop during regular market hours. On Mondays earnings call, Rosensweig said ChatGPT, the suddenly popular chatbot from startup OpenAI, was "having an impact on our new customer growth rate." The company, which initially became well known for developing a textbook rental model for college students, has expanded into homework and exam help products. Chegg said it was only providing guidance for the coming quarter and not for the full year because its "too early to tell how this will play out." Rosensweig noted that ChatGPT struggles with delivering accurate answers, a phenomenon known as hallucination, and a problem in the academic world.
Classifications
AskAI Classifications
LabelsLinked Companies
