Chegg Inc. ($CHGG) Stock Forecast: Down 31.7% Today

What is Chegg Inc.?

Chegg (NYSE: CHGG) operates as an education technology company providing online tutoring, textbook rentals, and various student services. The stock saw a notable downward trend today.

Why is Chegg Inc. going down?

CHGG stock is down 31.7% on Feb 25, 2025 20:56

• A decrease of 33% to 35% in Q1 revenue was disclosed by Chegg, falling short of what analysts had predicted, causing a negative market response.
• Uncertainty arose as Chegg explored strategic alternatives like acquisition or privatization, potentially influencing the bearish market sentiment.
• Legal actions against Alphabet's Google regarding AI search summaries may have raised doubts about Chegg's future revenue sources and competitive standing.
• Despite meeting expected earnings, the company's disappointing Q1 guidance and a 24% revenue drop in Q4 likely impacted investor trust, leading to a substantial decline in the stock price.

CHGG Price Chart

CHGG Technical Analysis

CHGG News

Chegg Struggles With Declining Traffic, Revenue Amid Increased Competition, Says Analyst - Chegg ( NYSE:CHGG )

Chegg forecasts 33% to 35% decline in Q1 revenue. Company explores acquisition or going private as strategic options. Get real-time earnings alerts before the market moves and access expert analysis that uncovers hidden opportunities in the post-earnings chaos. JPMorgan analyst Bryan M.

https://www.benzinga.com/analyst-ratings/price-target/25/02/43953096/chegg-struggles-with-declining-traffic-revenue-amid-increased-competition-says-analy

What's Going On With Chegg Shares Tuesday? - Chegg ( NYSE:CHGG )

Chegg reported earnings for the 2024 fiscal-year fourth-quarter and issued guidance below estimates. The company sees sales from $114.00 million to $116.00 million, versus analysts' estimate of $138.07 million, for the first-quarter.

https://www.benzinga.com/trading-ideas/movers/25/02/43947686/whats-going-on-with-chegg-shares-tuesday

Google Sued Over AI Search Overviews - Education Company Says Tech Giant Is Stealing Content And Driving Publishers Out Of Business - Alphabet ( NASDAQ:GOOG ) , Chegg ( NYSE:CHGG )

On Monday, Chegg Inc. CHGG sued Alphabet Inc.'s GOOG GOOGL Google, alleging that its AI-generated search overviews are unfairly using publishers' content, reducing site traffic, and threatening the future of online publishing.

https://www.benzinga.com/news/legal/25/02/43930715/google-sued-over-ai-search-overviews-education-company-says-tech-giant-is-stealing-content-and-driving

Chegg ( CHGG ) Q4 Earnings Match Estimates

Chegg (CHGG) delivered earnings and revenue surprises of 0% and 1.02%, respectively, for the quarter ended December 2024. Do the numbers hold clues to what lies ahead for the stock?

https://www.zacks.com/stock/news/2420734/chegg-chgg-q4-earnings-match-estimates

Chegg Stock Plunges After Q4 Revenue Falls 24%, Weak Q1 Guidance: Details - Chegg ( NYSE:CHGG )

Chegg reports quarterly earnings of 17 cents per share, which met the analyst consensus estimate. Quarterly revenue clocks in at $143.48 million, which beat the analyst consensus estimate of $142.05 million. Get two weeks of free access to pro-level trading tools, including news alerts, ...

https://www.benzinga.com/news/earnings/25/02/43927381/chegg-stock-plunges-after-q4-revenue-falls-24-weak-q1-guidance-details

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Chegg Inc. Price History

19.07.2024 - CHGG Stock was up 6.2%

• The bullish movement in CHGG stock could be attributed to the positive growth outlook for the K12 tutoring market, where Chegg Inc. is a major player.
• The rapid growth of the K12 tutoring market and the presence of key players like Chegg Inc. may have boosted investor confidence in the company's future prospects.
• Investors may be optimistic about Chegg Inc.'s potential for expansion and increased market share in the growing tutoring industry, leading to the strong bullish movement in the stock.

26.10.2024 - CHGG Stock was down 5.1%

• Despite announcing a repurchase agreement for its 0% convertible senior notes due 2026, Chegg's stock price showed strong bearish movement.
• The market may have reacted negatively to factors like overall market conditions, macroeconomic news, or investor sentiment towards the education technology sector.
• Investors might have anticipated a different announcement or had concerns about the company's future growth, leading to the stock's bearish movement.
• Profit-taking or changes in market dynamics could have also contributed to the downward pressure on Chegg's stock.

28.07.2024 - CHGG Stock was down 5.8%

• Analysis of the options market indicates a potential increase in CHGG stock, which conflicts with the current market trend.
• Despite the positive indicators from the options market, external factors such as underwhelming earnings or overall market conditions may have contributed to the decline in CHGG stock.
• It is advisable for investors to monitor any forthcoming updates or announcements regarding Chegg to gain insights into the disparity between the options market forecast and the actual stock performance.

03.00.2025 - CHGG Stock was down 5.4%

• Predictions from the options market suggest a potential increase in CHGG stock.
• This may indicate expected volatility in the stock price.
• Investors are advised to monitor options market activity for potential insights on future price changes.
• The rise in options activity could have influenced today's bearish movement in CHGG stock.

13.10.2024 - CHGG Stock was down 22.6%

• Despite exceeding Q3 earnings and revenue estimates, Chegg's stock faced downward pressure, pointing to a disconnect between performance and market response.
• The company's announcement of a 21% workforce reduction and lackluster Q4 guidance likely contributed to investor pessimism, overshadowing strong financial results.
• Investor sentiment appears to prioritize future outlook and guidance over past achievements, leading to a stock decline post-earnings beat.
• The contrast between Q3 outperformance and subdued Q4 guidance underscores the impact of forward-looking statements on market sentiment and stock performance.

11.10.2024 - CHGG Stock was up 5.5%

• Chegg's strong bullish movement today could be attributed to positive Wall Street estimates for its Q3 performance, indicating potential growth and exceeding expectations.
• The anticipation of favorable key metrics for Chegg in the quarter ended September 2024 might have fueled investor optimism and confidence in the company's future prospects.
• The market's positive reaction suggests that investors are bullish on Chegg's ability to capitalize on the increasing demand for online education services, especially in the current digital learning environment.

28.00.2025 - CHGG Stock was up 5.2%

• Chegg (CHGG) saw a significant bullish movement.
• This upward trend in Chegg's stock price could be linked to positive market sentiment and growing investor confidence.
• The mention of HubSpot (HUBS) experiencing a rise in stock value might have also contributed to the optimistic market sentiment, influencing Chegg's upward movement.
• Investors exhibit positivity towards the technology sector, resulting in heightened buying interest in companies such as Chegg and HubSpot.

06.07.2024 - CHGG Stock was down 22.3%

• Following the release of its second-quarter results, Chegg's stock (CHGG) saw a significant 24.1% decrease.
• While Chegg surpassed analysts' revenue expectations for the second quarter, its updated guidance for the third quarter did not meet Wall Street's estimates, leading to investor disappointment.
• Concerns about the evolving ed-tech industry and the company's future revenue growth prospects contributed to the sharp drop in CHGG stock.
• The market's response suggests that investors are prioritizing future performance and growth potential over past accomplishments, leading to the bearish trend in Chegg's stock price.

19.01.2025 - CHGG Stock was up 5.8%

• Chegg's strong bullish movement today could be attributed to positive insights from Wall Street analysts regarding its Q4 earnings.
• The anticipation of Chegg potentially surpassing Wall Street's estimates for key metrics in the quarter ended December 2024 might have fueled investor optimism.
• The market's bullish response indicates that investors have confidence in Chegg's ability to continue its growth trajectory and meet or exceed expectations in the education technology sector.

25.01.2025 - CHGG Stock was down 26.2%

• Chegg (CHGG) stock plunged after reporting a 24% decrease in Q4 revenue and providing weak Q1 guidance. This negative financial outlook likely contributed to the bearish movement.
• The lawsuit against Google over AI search overviews could have added to investor concerns, as it signifies potential legal challenges and competition in the tech industry for Chegg.
• Despite meeting analyst consensus estimates for earnings and beating revenue estimates for the quarter, the overall market sentiment may have been influenced more by the revenue decline and weak guidance.
• Investors and traders might be cautious about Chegg's future performance, especially with uncertainties surrounding revenue growth and potential legal battles impacting the stock price negatively.

25.01.2025 - CHGG Stock was down 31.7%

• A decrease of 33% to 35% in Q1 revenue was disclosed by Chegg, falling short of what analysts had predicted, causing a negative market response.
• Uncertainty arose as Chegg explored strategic alternatives like acquisition or privatization, potentially influencing the bearish market sentiment.
• Legal actions against Alphabet's Google regarding AI search summaries may have raised doubts about Chegg's future revenue sources and competitive standing.
• Despite meeting expected earnings, the company's disappointing Q1 guidance and a 24% revenue drop in Q4 likely impacted investor trust, leading to a substantial decline in the stock price.

25.01.2025 - CHGG Stock was down 29.5%

• Earnings for the fourth quarter of the fiscal year 2024 were reported by Chegg to be lower than analysts' expectations, coupled with sales guidance for the first quarter also missing estimates. This financial performance led to a downward trend in the stock price.
• Chegg initiated legal action against Google, accusing the tech giant of using publishers' content unfairly in AI-generated search summaries. This lawsuit might have introduced uncertainty and pessimism surrounding the company, further influencing its stock value negatively.
• Despite meeting earnings and revenue forecasts, a 24% decrease in Q4 revenue and unimpressive Q1 guidance caused a significant decline in Chegg's stock price. Market participants likely reacted promptly to these numbers, resulting in the downward movement.
• Analysts and investors evaluating crucial metrics and insights from Chegg's Q4 earnings may have deemed the results and guidance unsatisfactory, leading to a sell-off in the stock.