shares in edtech company Chegg still have not recovered from her dive earlier this month. As you may recall, the stock plummeted after the company reported this Q1 results.
While Chegg beat analysts’ expectations for the first quarter of the year, the company also issued a warning that didn’t fall on deaf ears: it warned that ChatGPT is hampering its ability to attract new subscribers.
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“[S]Since March we have seen a significant increase in student interest in ChatGPT. We now believe this is having an impact on the growth rate of our new customers,” said Dan Rosensweig, CEO of Chegg called during the company’s first-quarter earnings conference call.
Chegg is particularly vulnerable to competition from generative AI; Though you might know it as a place to borrow college textbooks, “it has also proven to be an incredibly popular cheating tool,” TechCrunch+ reported.
AI might be the least of Edtech’s worries, by Anna Heim, originally posted on TechCrunch