🚨 Chegg ($CHGG) and the AI disruption story no one can ignore
CHGG has become one of the clearest examples of how fast AI is reshaping entire industries.
Once a $14.7B edtech giant, Chegg built its business around helping students with homework solutions — offering access to a massive database of ~79 million answers for about $20/month 📚💻
Then came ChatGPT in late 2022 🤖
Within months, the impact was undeniable. By mid-2023, even Chegg’s CEO acknowledged that AI tools were directly hurting demand. The market reaction was brutal — the stock collapsed nearly 50% in a single day 📉
From there, the decline accelerated:
Revenue fell almost 49% by Q4 2025
Subscribers dropped from ~5M → under 3M
Workforce was cut by ~67% across multiple layoffs
US & Canada offices were fully shut down 🏢
The core issue was simple:
AI doesn’t just give answers — it explains them instantly, for free, and across every subject.
In just ~39 months, Chegg’s valuation fell from $14.7B to around $114M 💔
A case study in real time:
When knowledge becomes free, subscription knowledge businesses get rewritten overnight.
#AIDisruption #EdTechShift #MarketCrash
