Chegg downgraded to Market Perform from Outperform at Barrington

Barrington analyst Alexander Paris downgraded Chegg to Market Perform from Outperform with no price target after the company reported Q1 results that topped expectations, but withdrew FY23 guidance and provided guidance only for the current quarter with ChatGPT now said to be impacting new subscriber growth. The firm agrees with the company that embracing ChatGPT and generative AI "aggressively and immediately is the right call" and will likely result in a bigger market opportunity, but the reduced near-term expectations and current lack of visibility lead the firm to downgrade the shares.