Shares of edtech company Chegg have still not recovered from their plunge earlier this month. As you may recall, the stock fell off a cliff after the company reported its Q1 results.
While Chegg beat analysts’ expectations for the first quarter of the year, it also raised a warning that didn’t fall on deaf ears: It warned that ChatGPT was hampering its ability to add new subscribers.
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“[S]since March we saw a significant spike in student interest in ChatGPT. We now believe this has an impact on the growth of our new customers,” said Dan Rosensweig, CEO of Chegg, on the company’s Q1 earnings call.
Chegg is particularly vulnerable to competition from generative AI; while you may know it as a place to rent textbooks, “it’s also proven to be an incredibly popular tool for cheating,” MinRegion+ reported.
AI may be the least of edtech’s worries by Anna Heim, originally published on MinRegion