Chegg shares (NYSE:CHGG) soared over 20% in after-hours trading thanks to its dabbling in AI and quarterly revenue that exceeded expectations. While the company’s Q2 earnings per share settled at $0.28—just a penny shy of estimates—revenue hit $182.9M, outpacing the forecasted $176.51M. As Q3 looms, Chegg anticipates net revenue to land between $151M and $153M. CEO Dan Rosensweig also noted that their beta generative AI launched in May has been well-received, placing them in a unique spot to offer an unmatched learning experience for students.
Chegg’s recent survey revealed that while GenZ students are leaning into AI for education, there’s a touch of unease with the info dished out by ChatGPT. Rosensweig believes Chegg can fill this void with a high-quality, personal learning assistant. He emphasized their plans to craft large language models tailored to education, aiming to craft a vast global community of learners supported by top-notch, cost-effective tools.
What is CHGG Stock’s Price Target?
Overall, Wall Street has a consensus price target of $12 on CHGG stock, which has currently been surpassed in the after-hours session as shares trade around the mid-$12 range at the time of writing.