Chegg's stock plunges on fears of competition from ChatGPT

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Abstraction: ChatGPT disrupts edtech as Chegg stock crashes 48% in one day

Key points:

Chegg stock fell 48% in one day (May 2, 2023) to $9.08, down from above $100 in early 2021, after CEO warned ChatGPT was cutting into new customer growth
CEO Dan Rosensweig said students who normally paid for Chegg around midterms began using free ChatGPT instead, causing a notable drop since March 2023
Chegg had announced CheggMate, an AI learning companion powered by GPT-4, as a response to competitive threat
NYC and LA public schools had blocked ChatGPT access on school devices, reflecting educator fears about academic integrity
First major public example of an established edtech company losing significant market value directly attributed to ChatGPT competition

Connections: Chegg · Chatgpt · Openai · GPT-4 · AI Disruption · Edtech