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Chegg Inc (CHGG)

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Upturn Advisory Summary
01/02/2026: CHGG (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $2.79
1 Year Target Price $2.79
| 0 | Strong Buy |
| 0 | Buy |
| 2 | Hold |
| 2 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -54.81% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 107.13M USD | Price to earnings Ratio - | 1Y Target Price 2.79 |
Price to earnings Ratio - | 1Y Target Price 2.79 | ||
Volume (30-day avg) 5 | Beta 2 | 52 Weeks Range 0.44 - 1.90 | Updated Date 01/3/2026 |
52 Weeks Range 0.44 - 1.90 | Updated Date 01/3/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.68 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -17.14% | Operating Margin (TTM) -10.28% |
Management Effectiveness
Return on Assets (TTM) -3.02% | Return on Equity (TTM) -46.37% |
Valuation
Trailing PE - | Forward PE 1.84 | Enterprise Value 88270990 | Price to Sales(TTM) 0.24 |
Enterprise Value 88270990 | Price to Sales(TTM) 0.24 | ||
Enterprise Value to Revenue 0.2 | Enterprise Value to EBITDA 5.73 | Shares Outstanding 109273108 | Shares Floating 98372023 |
Shares Outstanding 109273108 | Shares Floating 98372023 | ||
Percent Insiders 10.13 | Percent Institutions 48.49 |
Upturn AI SWOT
Chegg Inc

Company Overview
History and Background
Chegg, Inc. was founded in 2005 by Josh Carlson, Mike Baker, and Chris Pallotti. Initially, it focused on providing physical textbooks for rent to college students. Over time, Chegg evolved significantly, shifting its focus to digital services, including online tutoring, homework help, and textbook rentals/sales. Key milestones include its IPO in 2013 and its strategic pivot towards a subscription-based model for its learning services.
Core Business Areas
- Chegg Study: This is Chegg's primary subscription service, offering students access to step-by-step solutions for textbook problems, expert Q&A, flashcards, and writing tools. It is designed to support students in their academic coursework and self-study.
- Chegg Publishing: While less emphasized now, Chegg still offers textbook rentals and sales, both new and used, alongside e-books, providing students with affordable options for course materials.
- Chegg Skills: This newer segment focuses on career-oriented learning and skill development, offering courses and certifications in areas like digital marketing and data science, aiming to bridge the gap between education and employment.
Leadership and Structure
Chegg is led by its CEO, Dan Rosensweig. The company operates with a functional organizational structure, with departments dedicated to product development, marketing, engineering, and operations. Its board of directors oversees the company's strategic direction and governance.
Top Products and Market Share
Key Offerings
- Chegg Study (Subscription): Provides on-demand academic support including textbook solutions, expert Q&A, and writing assistance. As of Q4 2023, Chegg reported 3.9 million total subscribers. Competitors include Coursera, Udemy (for supplemental learning), Course Hero, and direct university tutoring services. Market share data for individual product lines is not publicly disclosed, but Chegg Study is the dominant revenue driver.
- Textbook Services (Rentals/Sales): Offers students access to physical and digital textbooks. While historically a core offering, its contribution to revenue has decreased as digital services have grown. Competitors include Amazon, Barnes & Noble, and other online textbook retailers/rental services.
- Chegg Math Solver: An AI-powered tool to help students solve math problems step-by-step. It's integrated within Chegg Study. Competitors include Photomath, Wolfram Alpha, and other educational math apps.
Market Dynamics
Industry Overview
Chegg operates within the rapidly evolving EdTech (Educational Technology) market. This industry is characterized by increasing demand for online learning, personalized education, and tools that support academic success and career development. The rise of AI is also a significant factor, presenting both opportunities and challenges.
Positioning
Chegg is positioned as a leading digital learning platform for post-secondary students, offering a comprehensive suite of services to support their academic journey from homework help to skill development. Its competitive advantage lies in its established brand, large user base, and extensive library of educational content and solutions.
Total Addressable Market (TAM)
The global EdTech market is substantial and growing, with projections reaching hundreds of billions of dollars. Chegg primarily targets the higher education segment. While its TAM is significant, it faces competition from a wide range of players, from direct academic support services to broader online learning platforms. Chegg is well-positioned within its niche of student academic support but must continue to innovate to capture a larger share of the broader EdTech market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition among college students.
- Established subscription-based revenue model.
- Extensive library of textbook solutions and expert Q&A.
- Large and engaged user base.
- Diversifying into new learning and skill development areas.
Weaknesses
- Increased competition from AI-powered tools and other platforms.
- Potential for academic dishonesty concerns associated with its services.
- Reliance on the post-secondary education market.
- Recent slowdown in subscriber growth.
- Dependence on key personnel and technology.
Opportunities
- Expansion of AI capabilities for personalized learning and content creation.
- Growth in international markets.
- Partnerships with educational institutions.
- Development of new services for vocational training and lifelong learning.
- Leveraging data analytics for improved student outcomes.
Threats
- Advancements in AI could disintermediate some of Chegg's core offerings.
- Increased scrutiny regarding academic integrity.
- Economic downturns impacting student spending.
- New entrants with innovative business models.
- Changes in educational policies and curriculum.
Competitors and Market Share
Key Competitors
- Coursera (COUR)
- Udemy (UDMY)
- Duolingo (DUOL)
- 2U (TWOU)
Competitive Landscape
Chegg's primary advantage is its established user base and comprehensive academic support services. However, it faces intense competition from platforms offering broader online courses (Coursera, Udemy) and specialized learning tools (Duolingo). The rapid advancement of AI poses a significant threat and opportunity, with competitors quickly integrating AI into their offerings.
Major Acquisitions
StudyEdge
- Year: 2021
- Acquisition Price (USD millions): 140
- Strategic Rationale: To enhance Chegg's video-based learning content and expand its reach within the student community, particularly in STEM subjects.
BitLearning (Business of)
- Year: 2017
- Acquisition Price (USD millions): 30
- Strategic Rationale: To strengthen Chegg's digital textbook offerings and expand its platform capabilities.
Growth Trajectory and Initiatives
Historical Growth: Chegg experienced substantial growth in its subscriber base and revenue in the years leading up to and during the pandemic, driven by the increased reliance on online learning. However, recent years have seen a deceleration in subscriber growth, prompting a strategic review.
Future Projections: Analyst projections for Chegg's future growth are varied. Many anticipate a period of more moderate growth as the company adapts to the evolving EdTech landscape and integrates AI. Key growth drivers are expected to come from new product development and international expansion.
Recent Initiatives: Chegg has been actively investing in AI to enhance its existing products and develop new AI-powered learning tools. The company is also exploring new service offerings in career readiness and upskilling to diversify its revenue streams beyond traditional academic support.
Summary
Chegg Inc. is a significant player in the EdTech market, particularly for post-secondary academic support. Its strong brand and subscription model are key strengths. However, the company faces increasing competition, especially from AI-driven platforms, and has seen a recent slowdown in subscriber growth. Chegg needs to aggressively innovate with AI and diversify its offerings to maintain its competitive edge and drive future growth.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Chegg Inc. Investor Relations (SEC Filings)
- Reputable financial news outlets (e.g., Wall Street Journal, Bloomberg)
- Industry analysis reports
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It does not constitute financial advice. Market share data is an estimation based on industry reports and may not be exact. Financial figures are subject to change and audit. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Chegg Inc
Exchange NYSE | Headquaters Santa Clara, CA, United States | ||
IPO Launch date 2013-11-13 | Executive Chairman, President & CEO Mr. Daniel Lee Rosensweig | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 1241 | Website https://www.chegg.com |
Full time employees 1241 | Website https://www.chegg.com | ||
Chegg, Inc. provides individualized learning support to students that helps build essential academic, life, and job skills to achieve success in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, a language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity, as well as competencies consisting of emotional intelligence, mindset, emerging leadership, and decision making. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

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