Why Is Everyone Talking About Chegg Stock?

November 8, 2021

The online education stock lost nearly half its value in a single day.

Image source: Getty Images.

Key Points

  • Chegg’s stock price plummeted after its Q3 earnings report.
  • Its revenue growth missed expectations, and its guidance indicated that its post-pandemic slowdown would worsen.
  • Chegg’s business is still growing, but its stock had gotten overheated.
Chegg‘s stock price plunged nearly 50% on Tuesday after the education technology company posted its third-quarter earnings report.

That decline reduced Chegg’s stock price to its lowest levels since the COVID-19 crash last March and turned it into a trending topic on Reddit’s WallStreetBets (WSB) subreddit. Let’s see why Chegg’s investors were so eager to dump the stock, and if its post-earnings sell-off was justified.

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