James Tahaney masses textbooks on to a pallet in preparation for delivery on the Chegg warehouse in Shepherdsville, Kentucky, April 29, 2010.
John Sommers II | Bloomberg | Getty Pictures
Chegg shares tumbled after the web training firm stated ChatGPT is hurting progress, and issued a weak second-quarter income outlook.
“Within the first a part of the yr, we noticed no noticeable impression from ChatGPT on our new account progress and we have been assembly expectations on new sign-ups,” CEO Dan Rosensweig stated throughout the earnings name Tuesday night. “Nonetheless, since March we noticed a big spike in scholar curiosity in ChatGPT. We now imagine it is having an impression on our new buyer progress charge.”
Chegg shares have been final down 46% to $9.50 in premarket buying and selling Wednesday.
In any other case, Chegg beat first-quarter expectations on the highest and backside strains.
AI “utterly overshadowed” the outcomes, Morgan Stanley analyst Josh Baer stated in a word following the report. The analyst slashed his value goal to $12 from $18.
