By Kuldip K. Ambastha
On Tuesday, November 2, 2021, Avis Budget Group, Inc. (CAR) returned +108.3% and Chegg, Inc. (CHGG) returned -48.8% for the trading day. Avis, a vehicle rental and mobility solutions company, delivered strong 3Q2021 results and has announced a pledge to expand into using electric vehicles in the future. Avis has benefited from a recent rebound in travel plus an increase in the value of used cars. Chegg, a direct-to-student online learning platform, had weak 3Q2021 results across many metrics and also stated a weakened outlook for 4Q2021 plus the full calendar year of 2021. Chegg has struggled with a significant decline in American and Canadian online traffic, with students enrolling in less classes overall. Also, Chegg has seen lessened revenues since interest in online content has decreased as universities return to in-person classes for fully COVID-19 vaccinated individuals. Legal claims of copyright infringement are also a concern for Chegg, with a highly ambiguous outcome at this point in time. Avis and Chegg had starkly different return profiles on this trading day.
Keywords – Avis Budget Group, Inc., Avis Budget Group, Avis, CAR, vehicle rental, mobility solutions, electric vehicles, EVs, travel, cars, Chegg, Inc., Chegg, CHGG, online learning, education, students, COVID-19, coronavirus, vaccinated, copyright infringement, 3Q2021, 4Q2021, 2021.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CAR or CHGG.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.
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