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Chegg Inc. ($CHGG) Stock Forecast: Down 8.3% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Chegg Inc.?

Chegg (CHGG) is an educational technology company that provides online tutoring, textbook rentals, and academic services to students. The company is focusing on expanding into the global skilling market to drive growth.

Why is Chegg Inc. going down?

CHGG stock is down 8.3% on Jan 29, 2026 16:07

  • Possible reasons for Chegg's bearish movement today include the weak sentiment towards the stock, with brokerages giving it a "Strong Sell" rating and a low 12-month target price.
  • The market response may be linked to revenue challenges discussed in a recent earnings call, despite Chegg's strategic shift towards the skilling sector for future growth.
  • Concerns among investors about Chegg's competitive position in educational technology and its user growth compared to peers like Duolingo are prevalent.
  • Chegg's discounted valuation potential upside could be outweighed by doubts regarding its revenue generation and the overall market sentiment.

CHGG Price Chart

CHGG Technical Analysis

CHGG News

Chegg vs. Duolingo: Which EdTech Stock Offers Better Upside Now?

This article compares Chegg (CHGG) and Duolingo (DUOL), two prominent EdTech companies, to determine which offers better investment upside. Chegg is undergoing a strategic shift towards the global skilling market, while Duolingo benefits from increased user engagement and product expansion beyond language learning despite some concerns about moderating user growth. The analysis concludes that Chegg, with its discounted valuation and stable earnings estimates, currently offers a higher-risk turnaround with potential upside compared to Duolingo's premium valuation and slowing momentum.

https://www.tradingview.com/news/zacks:7d2479f09094b:0-chegg-vs-duolingo-which-edtech-stock-offers-better-upside-now/

0 News Article Image Chegg vs. Duolingo: Which EdTech Stock Offers Better Upside Now?

Chegg vs. Duolingo: Which EdTech Stock Offers Better Upside Now?

This article compares Chegg (CHGG) and Duolingo (DUOL), two EdTech companies, to determine which offers better investment upside given the rise of AI-driven tools in education. Chegg is pivoting from traditional academic services to a faster-growing global skilling market, exhibiting a discounted valuation. Duolingo shows strong user engagement and product innovation but faces moderating user growth and has a premium valuation, leading the analysis to favor Chegg as a higher-risk turnaround with valuation support.

https://www.theglobeandmail.com/investing/markets/stocks/DUOL/pressreleases/37252034/chegg-vs-duolingo-which-edtech-stock-offers-better-upside-now/

1 News Article Image Chegg vs. Duolingo: Which EdTech Stock Offers Better Upside Now?

Chegg Inc. Earnings Call: Skilling Growth Amidst Revenue Challenges

This article summarizes Chegg Inc.'s latest earnings call, highlighting their focus on the "skilling" sector for growth, targeting adult learners and corporate partnerships. Despite this strategic pivot and an expected increase in new student sign-ups, the company faces ongoing revenue challenges. The CEO emphasized their commitment to providing accessible, affordable, and personalized education to meet the evolving demands of the job market.

http://www.msn.com/en-us/money/companies/chegg-inc-earnings-call-skilling-growth-amidst-revenue-challenges/ar-AA1Qg0nS?apiversion=v2&domshim=1&noservercache=1&noservertelemetry=1&batchservertelemetry=1&renderwebcomponents=1&wcseo=1

2 News Article Image Chegg Inc. Earnings Call: Skilling Growth Amidst Revenue Challenges

Chegg Inc. Earnings Call: Skilling Growth Amidst Revenue Challenges

This article summarizes the key points from Chegg Inc.'s latest earnings call, highlighting the company's focus on its "Skilling" initiative for future growth while acknowledging current revenue challenges. Executives discussed strategies to navigate a competitive educational technology landscape and adapt to evolving student needs. The call provided insights into Chegg's financial performance and forward-looking plans.

https://www.msn.com/en-us/money/companies/chegg-inc-earnings-call-skilling-growth-amidst-revenue-challenges/ar-AA1Qg0nS?apiversion=v2&domshim=1&noservercache=1&noservertelemetry=1&batchservertelemetry=1&renderwebcomponents=1&wcseo=1

3 News Article Image Chegg Inc. Earnings Call: Skilling Growth Amidst Revenue Challenges

Chegg, Inc. (NYSE:CHGG) Receives Average Rating of "Strong Sell" from Brokerages

Chegg, Inc. (NYSE:CHGG) has received a consensus "Strong Sell" rating from five brokerages, with an average 12-month target price of $1.00. Despite the weak analyst ratings, institutional investors own a significant portion of the company and some, like AQR Capital Management, have recently increased their positions, indicating active institutional inflows. The stock opened at $0.78 and trades near its 52-week low.

https://www.marketbeat.com/instant-alerts/chegg-inc-nysechgg-receives-average-rating-of-strong-sell-from-brokerages-2026-01-23/

4 News Article Image Chegg, Inc. (NYSE:CHGG) Receives Average Rating of "Strong Sell" from Brokerages

Chegg Inc. Price History

09.11.2025 - CHGG Stock was up 5.1%

  • Despite the cautious rating, Chegg's stock showed a significant upward trend today.
  • The increase in institutional ownership and multiple funds either increasing or establishing positions might have influenced the positive movement.
  • Analysts upgrading their ratings from "hold" to "strong-buy," despite acknowledging AI-related challenges, potentially sparked investor enthusiasm and boosted stock purchases.
  • The discrepancy between the conservative ratings and the stock's actual performance indicates that investors see growth potential in Chegg's digital learning tools, leading to a rise in the stock price.

13.00.2026 - CHGG Stock was down 5.8%

  • A notable 60% decrease in capital spending for 2026 suggests a shift towards cost efficiency, potentially impacting short-term financial performance and investor sentiment.
  • The company's shift towards the Chegg Skilling segment, which concentrates on workforce training and industry-relevant skills, indicates a long-term growth strategy that could enhance profitability over time.
  • The recent downturn in the stock price might be linked to the company's restructuring initiatives and uncertainty regarding the success of its strategic changes, prompting investors to reassess the stock's value and growth potential.
  • Despite current market trends, the company's Zacks Rank #1 and positive earnings forecast for 2026 present potential opportunities for investors with a long-term perspective on the stock.

20.00.2026 - CHGG Stock was down 5.3%

  • The stock's decline is linked to Zacks Research's rating downgrade to "hold," with a consensus "Strong Sell" rating and a target price of $1.00.
  • Investor sentiment may have been influenced by the impending announcement of Chegg's 2025 financial results, prompting cautious trading.
  • Skepticism surrounds the shift to B2B partnerships amid revenue declines in the academic segment.
  • Institutional investors like Jefferies Financial Group Inc. and Burford Brothers Inc. have increased their stakes, suggesting a positive long-term view on the company.

17.11.2025 - CHGG Stock was up 6.5%

  • The positive movement in Chegg's stock today could be linked to investor optimism about the company's shift towards the global skilling market, which holds an estimated value of over $40 billion.
  • Despite receiving a non-compliance notice from the NYSE concerning its share price, investors may be hopeful about Chegg's potential turnaround in 2026, particularly with its Zacks Rank #1 (Strong Buy) and anticipated growth in the skilling segment.
  • The market dynamics could also be influenced by analysis suggesting that Chegg is undervalued, along with its robust gross profit margins and strong balance sheet, which might be attracting bullish sentiment among investors.
  • Overall, Chegg's proactive steps to tackle financial challenges and seize new growth opportunities appear to have resonated positively with investors, leading to the upward movement in its stock today.

11.10.2025 - CHGG Stock was up 18.2%

  • Chegg (CHGG) reported break-even earnings for Q3, exceeding expectations and resulting in a positive movement in the stock price.
  • Despite a year-over-year decline in revenues, investors responded favorably to Chegg's performance, showing confidence in the company's future.
  • The strong financial results in the quarter may have indicated to investors that Chegg is effectively managing challenges like AI disruption and subscriber declines, potentially paving the way for future growth and profitability.

11.10.2025 - CHGG Stock was up 5.7%

  • Chegg (CHGG) posted break-even earnings for Q3, surpassing market expectations by a considerable margin.
  • The favorable earnings outcome, coupled with a slight revenue outperformance, likely fueled the stock's bullish movement.
  • Investor sentiment may have been boosted by the company's adept handling of challenges like AI disruptions and declines in subscriber numbers.
  • Overall, the stock market responded positively to Chegg's robust Q3 performance, underscoring confidence in the company's growth trajectory despite potential hurdles.

29.00.2026 - CHGG Stock was down 8.3%

  • Possible reasons for Chegg's bearish movement today include the weak sentiment towards the stock, with brokerages giving it a "Strong Sell" rating and a low 12-month target price.
  • The market response may be linked to revenue challenges discussed in a recent earnings call, despite Chegg's strategic shift towards the skilling sector for future growth.
  • Concerns among investors about Chegg's competitive position in educational technology and its user growth compared to peers like Duolingo are prevalent.
  • Chegg's discounted valuation potential upside could be outweighed by doubts regarding its revenue generation and the overall market sentiment.

27.00.2026 - CHGG Stock was up 7.9%

  • Despite encountering revenue difficulties and being marked with a "Strong Sell" rating from analysts, the surge in Chegg's stock today may be linked to:
  • Investor optimism surrounding the company's focus on the "Skilling" initiative for future growth.
  • Institutional investors increasing their stakes, reflecting confidence in the company's long-term outlook.
  • The market potentially rethinking Chegg's valuation metrics and growth potential in the educational technology sector.
  • The different scenario of Duolingo, a competitor, experiencing a notable stock decline due to unfounded concerns of AI disruption, emphasizing Chegg's comparative steadiness and growth potential in the market.

22.00.2026 - CHGG Stock was up 5.1%

  • In spite of encountering pessimistic analyst outlooks and dipping below its 200-day moving average, Chegg's stock price surged significantly. Possible reasons for this positive trend include:
  • The company's shift towards B2B collaborations potentially boosted investor confidence by mitigating traffic fluctuations and improving revenue predictability.
  • Concerns among investors about the impact of generative AI on the education industry, reminiscent of similar developments with Duolingo, could have diminished as Chegg's focus on skill-building initiatives and AI utilization for enhancing its model is viewed as a growth avenue.
  • Although facing challenges with valuation metrics and a negative P/E ratio, the market shows optimism about Chegg's prospects in the competitive edtech sphere, particularly due to its focus on B2B partnerships and revenue steadiness.

08.00.2026 - CHGG Stock was up 5.0%

  • Today's positive movement in CHGG stock is linked to the company's plan to reduce capital expenditure by 60% until 2026, aiming to prioritize cash conservation and drive growth in the Chegg Skilling division.
  • Investors show confidence in Chegg's restructuring and cost control measures, evident in its recent stock performance surpassing industry peers. The transition from academic to B2B skilling services, alongside a promising earnings forecast for 2026, makes Chegg more appealing to investors.
  • Although facing challenges like revenue decline and competitive pressures, Chegg's integration of AI technologies and focus on B2B skilling and language learning signal a strategic shift. CHGG is perceived by the market as a high-risk, speculative play with potential for future growth and profitability.

10.11.2025 - CHGG Stock was up 7.2%

  • Despite a 45% decrease in the last three months stemming from declining academic service traffic and AI disruption, Chegg has restructured its focus on high-growth skilling business, anticipating double-digit growth.
  • With a discounted valuation and strong buy rating, Chegg presents a potential entry point for investors, backed by significant cost reductions and a positive financial outlook.
  • Analysts have varying views on Chegg's performance, with a consensus "Reduce" rating due to AI challenges, yet some have upgraded their stance to "strong-buy," reflecting optimism for the company's future.
  • The recent uptrend in Chegg's stock value may be linked to investors acknowledging the company's shift towards high-growth sectors and the potential for enhanced financial results ahead.

15.11.2025 - CHGG Stock was down 5.3%

  • The integration of Busuu and Chegg Skills showcases Chegg's strategic shift towards the global skilling market, aiming to seize opportunities in a market projected to exceed $40 billion by 2025.
  • Despite Chegg's focus on expanding its skilling business, the stock has seen a 45.4% decline in the past three months, attributed to reduced traffic in academic services and technological disruptions.
  • The market's response to Chegg's restructuring efforts reflects concerns among investors regarding the company's ability to excel in the competitive skilling market and sustain growth.
  • Investor sentiment towards Chegg's recovery potential in 2026 is juxtaposed with existing hurdles in the education technology sector, contributing to a pessimistic outlook on the stock's performance.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.