What Happened?
Shares of online study and academic help platform Chegg (NYSE: CHGG) jumped 8.7% in the afternoon session after a broad rally in technology stocks fueled by renewed optimism around artificial intelligence (AI).
The positive mood swept through the market as big tech stocks gained, boosting investor confidence in AI-related companies. This sector-wide lift likely cast a favorable light on Chegg, given the education technology company's own focus on AI. Chegg had previously announced plans to launch two new core capabilities designed to enhance its Chegg Study service into a personalized learning coach. This strategic direction positioned the company to benefit from the broader enthusiasm surrounding the AI space, attracting investor interest.
The shares closed the day at $1.84, up 10.2% from previous close.
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What Is The Market Telling Us
Chegg’s shares are extremely volatile and have had 100 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 7.8% after positive sentiment grew around the company's strategic shift toward artificial intelligence. The education technology company benefited from heightened demand for AI-driven and personalized learning solutions. In a key move, Chegg repositioned its main product, Chegg Study, into an AI-powered Personalized Learning Assistant. This strategic change aimed to tap into the growing market for adaptive learning in higher education and adult learning programs.
Chegg is up 9.5% since the beginning of the year, but at $1.84 per share, it is still trading 30.6% below its 52-week high of $2.65 from December 2024. Investors who bought $1,000 worth of Chegg’s shares 5 years ago would now be looking at an investment worth $26.87.
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