Chegg crashes 49% after the education company says the rise of ChatGPT among students is impacting customer growth
stock crashed as much as 49% on Tuesday after the company said that OpenAI's ChatGPT is increasingly being used by students for homework help.
First-quarter earnings beat analyst estimates as Chegg saw little impact on its business from ChatGPT early in the quarter. But that suddenly changed towards the end of the period after the upgraded"In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth, and we were meeting expectations on new signups. However, since March, we saw a significant spike in student interest in ChatGPT.
Rosensweig stressed that CheggMate is still in the early stages of its launch and the impact of both that and ChatGPT on its business may not be fully known until September, when the school season starts up again.
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