Chegg(CHGG) Drops 44.3% After Earnings Report

Chegg(CHGG)涨0.39%，连涨2天，近2日涨9.97%。，The share price rose to its highest level since March 2025 today, with an intraday decline of NaN%.

The strategy of buying CHGG shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.61% annualized return. This indicates a relatively stable performance, although the overall returns were modest due to the 30% decline in the stock price over the same period. The recent high point to buy from and holding for 1 week provided some resilience against the overall market volatility, especially with the significant cost reductions and restructuring plans announced by the company, which may positively influence the stock's future performance.

Chegg's recent stock performance has been influenced by several key factors. On May 15, the company released its earnings report, which led analysts to lower their target price for the stock. This adjustment suggests that the earnings report may not have met market expectations, contributing to a negative impact on the stock's performance.

Following the earnings report, Chegg's stock experienced a significant decline, dropping by 44.3%. This substantial decrease indicates a notable shift in investor confidence or perception of the company's value. The financial performance in the first quarter of 2025 showed a widening loss, despite exceeding revenue estimates. Additionally, Chegg is set to pay a $55 million settlement to investors, which could further strain the company's financial health and affect investor sentiment.

These factors collectively highlight the challenges Chegg is facing, with its recent financial performance and external obligations playing a significant role in the decline of its stock price. Investors and analysts will be closely monitoring the company's next steps and future financial reports to gauge its ability to recover and regain market confidence.