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Stock impact report

Why Chegg (CHGG) Shares Are Getting Obliterated Today [Yahoo! Finance]

Chegg, Inc. (CHGG) 
Last chegg, inc. earnings: 2/10 04:05 pm Check Earnings Report
US:NYSE Investor Relations: investor.chegg.com/overview/default.aspx
Company Research Source: Yahoo! Finance
Shares of online study and academic help platform Chegg (NYSE:CHGG) fell 32.1% in the morning session after the company reported weak fourth-quarter 2024 results, as both its number of users and services subscribers fell short of Wall Street's estimates, which is never a good look. Revenue plunged 24%, with subscription sales down 23%, highlighting the struggle to keep and attract customers. Despite aggressive cost-cutting, adjusted EBITDA dropped 45% year-on-year. The swing from a profit last year to a $6.1 million net loss this quarter adds to the concerns. Management pointed to Google's AI Overviews feature as a major issue, saying it's pulling traffic away from Chegg and hurting sales. The company now plans to take legal action. And the outlook for Q1 2025? Not great, as lower-than-expected sales and EBITDA guidance suggest the pain isn't over yet. Overall, this quarter was mediocre, and with the market fearing that this company is toast due to AI, a big move makes sense. Show less Read more
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