By Kuldip K. Ambastha
On Tuesday, May 3, 2022, the stock price of Chegg, Inc. (CHGG), a direct-to-student online learning platform, dropped by -30.3% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of November 1-5, 2021; By Kuldip K. Ambastha.”) In the latest quarter, the company reported positive information related to revenues, net income, and subscriber count. However, the company also gave discouraging guidance for the future, a future in which inflation (higher cost of living combined with higher wages) may result in more and more people wanting to prioritize work over education. Wall Street was clearly displeased with this future guidance from the leaders of Chegg.
Keywords – Chegg, Inc., Chegg, CHGG, online learning, education, students, revenues, net income, subscriber count, inflation, costs, wages, future guidance, work, Wall Street.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CHGG.
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