Chegg Inc. ($CHGG) Stock Forecast: Up 5.3% Today

What is Chegg Inc.?

A company known for providing digital and physical textbook rentals, online tutoring, and other student services, experienced a broad sector sell-off amid concerns about artificial intelligence impacting traditional SaaS business models.

Why is Chegg Inc. going up?

CHGG stock is up 5.3% on Feb 18, 2026 17:21

• Despite market uncertainties linked to artificial intelligence, the company displayed a notable bullish movement.
• The recent announcement of repurchasing $20 million of its 0% convertible notes for $19.4 million by Chegg provided a signal to investors about active balance sheet management and debt reduction, instilling confidence in the stock.
• Such proactive steps could have reinforced investor trust in the company's financial stability and growth potential, fueling the positive market momentum despite contrary analyst views and market conditions.
• Seen as a strategic move to optimize capital structure and boost shareholder value, this buyback of convertible notes might draw more investor interest to the stock.

CHGG Price Chart

CHGG Technical Analysis

CHGG News

ACV Auctions, eBay, Chewy, Expedia, and Chegg Shares Are Falling, What You Need To Know

Shares of ACV Auctions, eBay, Chewy, Expedia, and Chegg experienced declines following investor concerns that artificial intelligence could disrupt traditional software-as-a-service (SaaS) business models, sparking a broad sector sell-off. This "AI Panic" led to indiscriminate selling, despite the potential for such dips to offer buying opportunities for high-quality stocks. Specifically, Expedia's shares fell 4.9% but the market's reaction suggests the news is significant without fundamentally altering its business perception.

https://finviz.com/news/313300/acv-auctions-ebay-chewy-expedia-and-chegg-shares-are-falling-what-you-need-to-know

Chegg to repurchase $20M of 0% convertible notes, leaving $33.9M outstanding

Chegg announced a private repurchase agreement to buy back $20.0 million of its 0% Convertible Senior Notes due 2026 for $19.4 million. This transaction is expected to close on February 20, 2026, and will leave $33.9 million of the 2026 Notes outstanding. The company will still have $122.4 million available under its existing securities repurchase program.

https://www.tradingview.com/news/tradingview:1d50c6804eaba:0-chegg-to-repurchase-20m-of-0-convertible-notes-leaving-33-9m-outstanding/

Chegg Repurchases Convertible Notes to Reduce Outstanding Debt

Chegg has repurchased $20 million of its 0% 2026 convertible notes for $19.4 million in cash, reducing its outstanding debt. This move is part of the company's existing securities repurchase program, demonstrating active balance-sheet management. The transaction leaves $33.9 million of these notes outstanding and maintains significant capacity under its buyback authorization.

https://www.tipranks.com/news/company-announcements/chegg-repurchases-convertible-notes-to-reduce-outstanding-debt

Chegg Announces Repurchase of 0% Convertible Senior Notes Due 2026

Chegg, Inc. announced a privately negotiated agreement to repurchase $20.0 million in aggregate principal amount of its 0% Convertible Senior Notes due 2026 for $19.4 million. This transaction is part of Chegg’s existing securities repurchase program and is expected to close on February 20, 2026. Following the repurchase, approximately $33.9 million of the notes will remain outstanding, with $122.4 million still available under the repurchase program.

https://www.businesswire.com/news/home/20260217947952/en/Chegg-Announces-Repurchase-of-0-Convertible-Senior-Notes-Due-2026

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

Chegg, Inc. (NYSE:CHGG) has received a consensus "Strong Sell" rating from five analysts, with an average 12-month price target of $1.00. The company's shares are trading at distressed levels, opening at $0.56 with a market cap of $61.63 million, and it remains unprofitable despite modestly beating revenue estimates in its latest quarter. Institutional investors have made various adjustments to their holdings in Chegg.

https://www.marketbeat.com/instant-alerts/chegg-inc-nysechgg-receives-average-recommendation-of-strong-sell-from-analysts-2026-02-17/

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Chegg Inc. Price History

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.

06.01.2026 - CHGG Stock was up 15.0%

• Anticipated decline in EPS and net revenues in the upcoming Q4 earnings, attributed to increased competition from AI-driven options and decreased subscriber engagement.
• Partnership with Woolf for skill-based degrees is viewed as a strategic move to boost the value of Chegg's services and improve competitiveness in the ed-tech industry.
• Despite negative free cash flow in Q3 2025 due to restructuring expenses and revenue drops, the company's focus on its Skilling unit is expected to fuel future growth and potentially revive its stock performance.
• Collaboration between Chegg Skills and Woolf to introduce skill-first degrees reflects the company's dedication to providing career-oriented education, addressing the needs of a fast-evolving workforce and expanding market penetration.

11.01.2026 - CHGG Stock was down 11.9%

• Despite surpassing earnings expectations and demonstrating revenue growth in its skilling segment, Chegg's stock faced downward pressure following the release of its lower-than-anticipated Q1 revenue guidance.
• The market responded unfavorably to the contrast between Chegg's strong performance in skilling and the subdued outlook for its academic business, resulting in a sell-off of the stock.
• Heightened options trading, particularly a rise in call options, suggests speculative interest in a potential rebound, underscoring the market's uncertainty regarding Chegg's future trajectory amidst its strategic shift and academic hurdles.
• Chegg's intricate situation, emphasizing AI and technical skills for workforce skilling, appears conflicting with its traditional academic offerings, prompting varied sentiments among investors and traders.

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.

18.01.2026 - CHGG Stock was up 5.3%

• Despite market uncertainties linked to artificial intelligence, the company displayed a notable bullish movement.
• The recent announcement of repurchasing $20 million of its 0% convertible notes for $19.4 million by Chegg provided a signal to investors about active balance sheet management and debt reduction, instilling confidence in the stock.
• Such proactive steps could have reinforced investor trust in the company's financial stability and growth potential, fueling the positive market momentum despite contrary analyst views and market conditions.
• Seen as a strategic move to optimize capital structure and boost shareholder value, this buyback of convertible notes might draw more investor interest to the stock.

12.01.2026 - CHGG Stock was down 10.2%

• Following the release of disappointing fourth-quarter 2025 financial results, Chegg witnessed a substantial year-over-year decrease in net revenues along with a net loss. The weak first-quarter 2026 guidance presented by the company further contributed to the stock's drop.
• Despite surpassing Q4 earnings projections, investors were unsettled by Chegg's decision to slash Q1 revenue guidance below analyst forecasts, resulting in a consensus rating of "Strong Sell" from analysts and a significant decrease in the stock price.
• Chegg's strategic move towards a business-to-business (B2B) approach in the skilling sector, with a focus on workforce development, aims to enhance revenue and margins. Nevertheless, the transition from direct-to-consumer academic services against a backdrop of declining academic demand poses uncertainties for investors.
• While Chegg's endeavors in workforce skilling and cost optimization initiatives have shown initial revenue progress, there persists skepticism in the market regarding the company's capability to navigate the shifting educational landscape and sustain long-term growth.

17.01.2026 - CHGG Stock was down 5.5%

• Following the disappointing fourth-quarter financial results, Chegg (CHGG) stock showed a significant bearish movement. The results included a 49% year-over-year drop in net revenues and a net loss of $32.8 million.
• The first-quarter 2026 guidance of projected revenues ranging from $60 million to $62 million further contributed to the decline in the stock.
• Analysts have collectively rated Chegg as a "Strong Sell," expressing concerns about the company's performance and future prospects.
• The market response to Chegg's Q4 earnings call, focusing on revenue decrease and restructuring initiatives, also influenced the stock's downward trend.

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.

13.01.2026 - CHGG Stock was up 5.1%

• Despite posting a net loss and revenue below expectations for Q4 2025, Chegg's stock demonstrated a notable bullish trend today.
• The increase in bullish options trading activity, despite the company's weak financials and guidance, indicates speculative interest in a potential recovery.
• Chegg's shift towards a B2B skilling business, focusing on AI and technical expertise, may have spurred investor positivity and contributed to the upward market movement.
• Strong Q4 earnings and revenue exceeding estimates, coupled with efforts to target the promising workforce skilling sector, seem to be bolstering investor confidence, overshadowing recent financial hurdles.

10.01.2026 - CHGG Stock was down 6.2%

• In the latest quarter, Chegg (CHGG) delivered mixed Q4 CY2025 results, surpassing revenue expectations but still showing a year-on-year decline, prompting a negative market response.
• Despite outperforming revenue projections and narrowing its loss per share, concerns regarding the company's long-term prospects and valuation triggered a bearish investor sentiment, leading to significant market downturn.
• Chegg's strategic pivot towards the skilling market and the anticipated growth in this sector may have provided a glimmer of optimism, yet apprehensions surrounding the company's financial performance and future trajectory dominated overall market sentiment.
• The notable increase in options trading activity before the earnings announcement, marked by a call-to-put ratio indicating bullish sentiment, implied heightened expectations among investors for a more favorable outcome, potentially intensifying the market's reaction to the results.

03.01.2026 - CHGG Stock was down 6.4%

• Over the past month, Chegg's stock price has dropped by 25%, and it has fallen by 49% over the year. These declines reflect the company's weakening revenue and pessimistic outlook for future performance.
• The upcoming earnings report for Q4 2025 is expected to reveal a loss per share, which has heightened investor worries and led to a "Strong Sell" analyst recommendation.
• Dropping below the 200-day moving average has compounded the negative perceptions surrounding Chegg, underscoring a bearish trajectory in the stock price.
• Despite being compared to Duolingo in the EdTech industry, Chegg's reduced valuation and strategic pivot towards the global skilling market may present a riskier opportunity for investors seeking potential long-term growth.