ChatGPT’s homework is Chegg’s headache

According to media reports, Chegg Inc. shares have been tumbling down and it is openly holding ChatGPT responsible.?Chegg, a US tech player based in Santa Clara provides homework assistance, digital & physical textbook rentals, textbooks, online tutoring and other student services, the CEO has gone on record to say that growing student interest in ChatGPT has impacted its customer acquisition rate, more so in the second half of the year.?

The expected revenue for the year is now expected to be anywhere between $175 million and $178 million for this quarter, way below the FactSet consensus estimate of $193.6 million, it may be noted that Chegg surpassed first-quarter expectations on both top and bottom lines; the EPS ex-items of 27 cents was above the analyst estimate of 26 cents and the $188 million revenues were ahead of the consensus figure of $185 million.? ?

• Interestingly, Chegg is developing an in-house AI product called CheggMate in collaboration with OpenAI , which has developed ChatGPT
• How it will counter the threat of ChatGPT and reinstate the glory days is yet unclear
• A beta is expected to be released during the month, but no details have yet been shared about the full launch

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