Chegg Shares Slide as AI Pares Traffic

Dow Jones

25 Feb

By Katherine Hamilton

Chegg shares slipped after the company said traffic has dropped off due to generative artificial intelligence.

The stock fell 31% to $1.08 Tuesday morning, which would be an all-time low at close, according to Dow Jones market data.

While legal action against Google and a strategic review could create some value in the future, investors are concerned about how the education website can compete with AI, Raymond James analysts said.

Chegg swung to a loss in its fourth quarter and non-subscriber traffic fell 49% in January. Google's AI overviews, which started in May giving searchers a summary of various online materials, has been keeping users from visiting Chegg's site, Chief Executive Nathan Schultz said.

Chegg said it is undertaking a strategic review process and exploring a range of alternatives, including being acquired or going private.

It also filed a lawsuit against Google claiming the search engine forces Chegg to supply content for its AI summaries without fair compensation.

Total subscribers decreased 21% in the fourth quarter. Chegg said it expects $114 million to $116 million in revenue during the first quarter of 2025, which would be a roughly 34% decline from the previous year and is below analysts' forecast of $138.7 million.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 25, 2025 10:43 ET (15:43 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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Google's AI overviews, which started in May giving searchers a summary of various online materials, has been keeping users from visiting Chegg's site, Chief Executive Nathan Schultz said. \n</p>\n<p>\n  Chegg said it is undertaking a strategic review process and exploring a range of alternatives, including being acquired or going private. \n</p>\n<p>\n  It also filed a lawsuit against Google claiming the search engine forces Chegg to supply content for its AI summaries without fair compensation. \n</p>\n<p>\n  Total subscribers decreased 21% in the fourth quarter. 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Google's AI overviews, which started in May giving searchers a summary of various online materials, has been keeping users from visiting Chegg's site, Chief Executive Nathan Schultz said. \n</p>\n<p>\n  Chegg said it is undertaking a strategic review process and exploring a range of alternatives, including being acquired or going private. \n</p>\n<p>\n  It also filed a lawsuit against Google claiming the search engine forces Chegg to supply content for its AI summaries without fair compensation. \n</p>\n<p>\n  Total subscribers decreased 21% in the fourth quarter. Chegg said it expects $114 million to $116 million in revenue during the first quarter of 2025, which would be a roughly 34% decline from the previous year and is below analysts' forecast of $138.7 million. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Katherine Hamilton at katherine.hamilton@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 25, 2025 10:43 ET (15:43 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones & Company, Inc.\n</p>\n</font>\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4514","symbol_name":"搜索引擎","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2514874016","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2514874016","pubTimestamp":1740498180,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Chegg shares slipped after the company said traffic has dropped off due to generative artificial intelligence.The stock fell 31% to $1.08 Tuesday morning, which would be an all-time low at close, according to Dow Jones market data.While legal action against Google and a strategic review could create some value in the future, investors are concerned about how the education website can compete with AI, Raymond James analysts said.Chegg swung to a loss in its fourth quarter and non-subscriber traffic fell 49% in January. Google's AI overviews, which started in May giving searchers a summary of various online materials, has been keeping users from visiting Chegg's site, Chief Executive Nathan Schultz said.Chegg said it is undertaking a strategic review process and exploring a range of alternatives, including being acquired or going private.It also filed a lawsuit against Google claiming the search engine forces Chegg to supply content for its AI summaries without fair compensation.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4514":"搜索引擎","LU2592432038.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"A\" (USD) ACC","LU2275660780.HKD":"SCHRODER ISF GLOBAL CLIMATE CHANGE EQUITY \"A\" (HKD) ACC","LU2092937148.SGD":"Blackrock ESG Multi-Asset A8 SGD-H","LU1043141123.HKD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (HKD) INC 2","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","IE00BFXG0V08.USD":"BNY MELLON GLOBAL LEADERS \"B\" (USD) ACC","LU1670627923.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) ACC","LU0426412945.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) ACC","LU1267930813.SGD":"FRANKLIN TEMPLETON SHARIAH GLOBAL EQUITY \"AS\" (SGD) ACC","LU1934455863.HKD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (HKD) ACC","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0426417589.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) INC","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","LU0683600562.USD":"AB SELECT US EQUITY \"A\" (USD) ACC","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU0788109477.HKD":"BGF GLOBAL ALLOCATION \"A2\" (HKDHGD) ACC","LU1691799644.USD":"Amundi Funds Polen Capital Global Growth A2 (C) USD","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","SGXZ31699556.SGD":"UGDP UNITED GLOBAL QUALITY GROWTH \"C\" (SGDHDG) ACC","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","LU2456880835.USD":"ALLIANZ GLOBAL INCOME \"AT\" (USD) ACC","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","BK4538":"云计算","BK4077":"互动媒体与服务","LU2764262908.HKD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (HKD) ACC","LU0528227936.USD":"富达环球人口趋势基金A-ACC","SG9999014914.USD":"UNITED GLOBAL QUALITY GROWTH (USDHDG) INC","LU2430703095.HKD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (HKD) INC","LU2458330243.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A-H1\" (SGDHDG) ACC","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","CHGG":"Chegg Inc","LU2764263039.SGD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (SGDHDG) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU2430703178.SGD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (SGDHDG) INC","LU2242650005.HKD":"FIDELITY FUNDS GLOBAL MULTI ASSET DYNAMIC \"A\" (HKD) ACC","LU0265550946.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A5\" (USD) INC","USJW.SI":"ALPHAB 3xLongSG261006","LU0079474960.USD":"联博美国增长基金A","LU0823421333.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) ACC","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H"},"translate_title":"由于人工智能削减流量，Chegg股价下跌","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHGG":1,"USJW.SI":0.6},"content_text":"By Katherine Hamilton \n\n\n \n\n\n  Chegg shares slipped after the company said traffic has dropped off due to generative artificial intelligence. \n\n\n  The stock fell 31% to $1.08 Tuesday morning, which would be an all-time low at close, according to Dow Jones market data. \n\n\n  While legal action against Google and a strategic review could create some value in the future, investors are concerned about how the education website can compete with AI, Raymond James analysts said. \n\n\n  Chegg swung to a loss in its fourth quarter and non-subscriber traffic fell 49% in January. Google's AI overviews, which started in May giving searchers a summary of various online materials, has been keeping users from visiting Chegg's site, Chief Executive Nathan Schultz said. \n\n\n  Chegg said it is undertaking a strategic review process and exploring a range of alternatives, including being acquired or going private. \n\n\n  It also filed a lawsuit against Google claiming the search engine forces Chegg to supply content for its AI summaries without fair compensation. \n\n\n  Total subscribers decreased 21% in the fourth quarter. Chegg said it expects $114 million to $116 million in revenue during the first quarter of 2025, which would be a roughly 34% decline from the previous year and is below analysts' forecast of $138.7 million. \n\n\n \n\n\n  Write to Katherine Hamilton at katherine.hamilton@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  February 25, 2025 10:43 ET (15:43 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0}}}