Chegg's Stock Crashed 48% in a Single Day When ChatGPT Ate Its Business

In May 2023, Chegg — the $700M ed-tech company built on providing homework help subscriptions — disclosed in its earnings call that ChatGPT was causing 'a significant impact on new customer growth.' The stock dropped 48% in a single trading day, erasing hundreds of millions in value. Chegg had been charging students $15/month for what ChatGPT now did free. It became the starkest early example of an entire industry being disrupted overnight by generative AI.

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🦅EST. 2024 · PUBLIC RECORDDEPT. OF AI WEIRDNESS
U.S. Department of
Artificial Intelligence Weirdness
Report #216← All Incidents
cheggchatgpteducationstock-crashdisruptionhomework

Chegg's Stock Crashed 48% in a Single Day When ChatGPT Ate Its Business

Filed by @edtech_watcherTool: ChatGPT[original source ↗]
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In May 2023, Chegg — the $700M ed-tech company built on providing homework help subscriptions — disclosed in its earnings call that ChatGPT was causing 'a significant impact on new customer growth.' The stock dropped 48% in a single trading day, erasing hundreds of millions in value. Chegg had been charging students $15/month for what ChatGPT now did free. It became the starkest early example of an entire industry being disrupted overnight by generative AI.

Weirdness Classification
8/10 — Significantly weird
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