--- title: "Online Tutoring Company Stock Crashes as ChatGPT Steamrolls Its Business" description: "Chegg, an online tutoring company that once dominated its industry, is majorly hurting in the wake of ChatGPT. " date: "2023-05-03" modified: "2023-05-03" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/chegg-stock-chatgpt" categories: - "Artificial Intelligence" - "OpenAI" tags: - "chatgpt" - "EdTech" - "education" - "the digest" --- # Online Tutoring Company Stock Crashes as ChatGPT Steamrolls Its Business ![Chegg, an online tutoring company that once dominated its industry, is majorly hurting in the wake of ChatGPT. ]() *\Image: Getty / Futurism\* ## E-Kvetch An online tutoring company that once dominated its industry is majorly hurting after just a few months of ChatGPT. As [*CNBC* reports](), the CEO of the orange-branded e-tutoring company Chegg admitted during an earnings call earlier this week that the outlook for his company is less than sunny now that its stock is down more than 40 percent. "In the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups," Dan Rosensweig, the company's CEO, said during the Monday night call. "However, since March we saw a significant spike in student interest in ChatGPT. We now believe it’s having an impact on our new customer growth rate." ## Ups and Downs Though it was founded in 2005 [as a textbook rental site]() and went public a decade ago, [Chegg's value rose exponentially]() alongside its user base during COVID-19 lockdowns, when distance learning made the need for online tutoring — or, according to some critics, [cheating]() — more pronounced. In early 2021, [*Forbes* put the company on its cover]() as its stock value more than tripled and its valuation ballooned to more than $12 billion. In just a few short years, however, the company's stock price fell to around $9 at the closing of the markets yesterday, which is notably less than the $12.50 it was valued at [during its initial IPO]() in 2013. Just a few weeks ago, Chegg announced that it's [developing its own AI](), CheggMate, in partnership with OpenAI to help students with homework. But as analysts who spoke to *CNBC* note, that probably won't be enough to change its stock trajectory until next year. Given that both of these companies are accused of helping students cheat, it's not exactly surprising that one may be overtaking the other as ChatGPT — the apex predator in this situation — eats its predecessors. **More on education:** [*High School Teacher Confesses to Using ChatGPT for Work*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()