Get the latest tech news

Shares of two big online education stocks tank more than 10% as students use ChatGPT

Chegg and Coursera both sank 14% in premarket trading Tuesday, a day after issuing disappointing guidance.

Chegg's upbeat comments on AI were a far cry from last year's first-quarter conference call, when Rosensweig said ChatGPT was having an impact on the company's new customer growth rate. "We believe Schultz brings product expertise & operational knowledge as Chegg navigates its GenAI transformation & seeks to restore subscriber & revenue growth," analyst Bryan Smilek wrote in a note Tuesday. "Although we believe GenAI content/products and international self-help (e.g., local payments) should provide a lift, we expect some investor pushback on the 2H acceleration now embedded in guidance, until gaining more visibility," analyst Rishi Jaluria wrote in a note Tuesday.

Get the Android app