Chegg, Inc. (CHGG)

Chegg, Inc.'s stock (CHGG) has experienced a significant decline over the past six months. As of early February 2026, the stock has seen a year-to-date total return of -13.48% and a trailing twelve-month (TTM) total return of -47.07%. Analysts have issued an average rating of "Strong Sell" with an average target price of $1.00. The decline in revenue, partly attributed to the rise of AI alternatives like ChatGPT, has been a notable factor impacting the stock. Chegg's subscription services subscriber base has been shrinking, with a 31% year-over-year decrease in Q1 2025 and a further drop to 2.6 million subscribers by Q2 2025, marking a 40% year-over-year decline.

Demand for Chegg's products and services exhibits clear seasonality, typically peaking during the holiday season and in the spring. This aligns with academic calendars, where students often seek additional support during peak study and exam periods.

Chegg, Inc. is an American educational technology company based in Santa Clara, California, operating in the Consumer Defensive sector, specifically in Education & Training Services. Chegg's platform provides products and services to support students' academic and career development. The company's offerings include Subscription Services like Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu, as well as Skills and Other services encompassing skills-based learning platforms, advertising, and textbook rentals and sales.

Chegg, Inc. is headquartered in Santa Clara, California, and has offices in New York and San Francisco in the United States. Internationally, Chegg has offices in Berlin, Germany; New Delhi and Visakhapatnam, India; and Rehovot, Israel. The company serves a global subscriber base, with over 2 million subscribers outside the United States in 2022.

Chegg's brand reputation in the past year has been significantly influenced by the rise of advanced AI models. The company has faced criticism for allegedly facilitating academic misconduct. In response, Chegg has integrated AI into its services, launching "Solution Scout" in April 2025. The company launched an innovative brand marketing campaign in the fall of 2024 to reinvigorate traffic and drive conversions. Despite these efforts, the competitive landscape continues to pose a challenge to Chegg's growth and reputation.

Institutional investors hold a substantial portion of Chegg, Inc. stock, with 95.18% of the stock currently owned by institutional investors. Overall, institutional ownership stands at 47.8% of the shares outstanding, totaling 52.23 million shares. Major institutional shareholders include Vanguard Group Inc., Acadian Asset Management Llc, Charles Schwab Investment Management Inc., Arrowstreet Capital, Limited Partnership, Renaissance Technologies Llc, Morgan Stanley, Quinn Opportunity Partners LLC, BlackRock, Inc., and Millennium Management Llc.