Chegg traffic declining as ChatGPT may pose subs headwinds, says BMO Capital

BMO Capital analyst Jeffrey Silber notes that while it may be "too early" to assess the impact of ChatGPT on Chegg, it could present some headwinds to subscriber growth in the current semester. The traffic has declined and looks to be worsening since the launch of ChatGPT, even though it is "not as bad as for the industry", the analyst tells investors in a research note. Silber is still keeping his Market Perform rating and $30 price target on Chegg.