Shares of Chegg fell 4.9% due to concerns about AI competition affecting its core business model. The stock closed at $1.54, down 4.1% from the previous close. Analysts have issued a “Sell” rating with an average price target of $1.70, indicating a potential 0.58% decrease in the stock price over the next year. Chegg is down 8.3% since the beginning of the year and is trading 41.9% below its 52-week high. Investors who bought $1,000 worth of Chegg shares 5 years ago would now have an investment worth $23.33.

The market perceives the news as meaningful but unlikely to fundamentally change its view of Chegg. The stock has had 99 moves greater than 5% in the last year. Analysts believe the stock is likely to underperform the broader market, pressuring the shares. Investors are encouraged to consider thematic investing opportunities, such as a profitable growth stock benefiting from the rise of AI.

Read more at Stockstory.org – Bloomberg: Why Chegg (CHGG) Stock Is Down Today