Chegg Stock (CHGG): Can AI Turn This EdTech Titan Around?

By Patricia Miller

Sep 19, 2025

2 min read

Chegg’s core business is crumbling under AI pressure—can bold pivots and cost cuts spark a comeback, or is the damage already done?

#Chegg Latest

Chegg is a leader in online educational resources, recently experiencing significant declines in revenue and subscribers. The competitive landscape has intensified due to generative AI and decreased web traffic.

Nevertheless, the stock popped nearly 19% yesterday on positive sentiment around its AI pivot. This comes a few days after news that Chegg is to pay $7.5M to settle allegations concerning unlawful cancellation practices.

Despite some improvements in financials like adjusted EBITDA and non-GAAP profitability, the core academic subscription service is facing challenges.

Chegg is pursuing a turnaround strategy focusing on cost reductions, AI-enhanced products, and expanding into language learning and skills training, but concerns about regulatory risks remain.

#What Investors Need to Know About Chegg

  • Revenue and subscriber numbers have sharply declined.

  • Despite financial improvements, the core business is under pressure.

  • Chegg is implementing aggressive cost cuts and new offerings.

  • Regulatory risks could affect subscription cancellation processes.

#Chegg At A Glance

Chegg is an educational technology company that offers textbook rentals, homework help, and online tutoring services. Its primary revenue source is subscriptions for academic assistance, which it is now trying to diversify into other areas like language learning and skills training.

#Competitive Landscape

Chegg faces stiff competition from other educational platforms and tools, especially those leveraging AI technology. Major competitors include companies like Coursera, Duolingo, and Khan Academy, all of which are expanding their offerings to attract more users.

#Near-Term Catalysts and Risks

For Chegg, the near term involves a delicate balancing act. While the company is attempting to restore growth through strategic initiatives, the looming regulatory issues surrounding subscription practices could complicate progress. The market remains cautious around its ability to stabilize before any potential growth, reflecting an uncertain future that hinges greatly on its upcoming efforts.

#Trading Chegg Stock

For retail investors, Chegg stock may present opportunities for strategic positioning. With the stock facing headwinds and mixed analyst opinions, consider adopting a speculative approach. Monitor indicators for signs of stabilization or further decline before making substantial commitments. This stock could act as a high-risk, high-reward proposition in your portfolio.

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.