Shares of edtech firm Chegg nonetheless haven’t recovered from their dive earlier this month. As chances are you’ll recall, its inventory fell off a cliff after the corporate reported its Q1 results.
Whereas Chegg beat analyst expectations for the primary quarter of the 12 months, it additionally raised a warning that didn’t fall on deaf ears: It warned that ChatGPT was hindering its capacity so as to add new subscribers.
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“[S]ince March, we noticed a big spike in pupil curiosity in ChatGPT. We now consider it’s having an impression on our new buyer progress fee,” Chegg CEO Dan Rosensweig said through the firm’s Q1 earnings name.
Chegg is especially susceptible to competitors from generative AI; though chances are you’ll understand it as a spot to lease faculty textbooks, “it has additionally confirmed an extremely standard software for dishonest,” TechCrunch+ reported.