Shares of educational technology company Chegg still I have not recovered from his dive earlier this month. As you may recall, its shares fell off a cliff after the company reported its first quarter results.
While Chegg beat analysts’ expectations for the first quarter of the year, it also issued a warning that didn’t fall on deaf ears: It warned that ChatGPT was hampering its ability to add new subscribers.
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“[S]Since March, we have seen a significant increase in student interest in ChatGPT. We now believe that it is having an impact on our new customer growth rate,” Chegg CEO Dan Rosensweig. saying during the company’s first-quarter earnings call.
Chegg is particularly vulnerable to competition from generative AI; while you may know it as a place to rent college textbooks, “it’s also proven to be an incredibly popular cheating tool,” TechCrunch+ reported.
AI might be the least of edtech worries by ana heim originally posted on TechCrunch
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