#4 - Chegg (NYSE:CHGG)
Chegg (NYSE: CHGG) - If you haven’t yet noticed, there is a theme with high-risk stocks … the possibility of an acquisition. It’s one of the outcomes that make a stock like Chegg attractive to investors. Chegg is not a household name, but if you have a son or daughter in college then there’s a good chance that they are using Chegg products. After outsourcing its business in the online textbook rental space, the company is firmly entrenched in establishing a leadership position as a digital platform for U.S. college students. This platform, among other things, provides services such as SAT test preparation. If you’ve followed the news recently you can see why students may put a greater focus on their standardized tests now that there will be an intense focus on keeping the playing field level. The company went through many years of negative growth, but revenues are growing. The risk for Chegg comes from Amazon who is currently offering their Prime services to college students for free. However, some analysts believe that with Chegg already entrenched on college campuses (both virtual and online), Amazon may take the path of least resistance and acquire Chegg.
About Chegg
Chegg, Inc operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside.
Read More - Current Price
- $3.78
- Consensus Rating
- Strong Sell
- Ratings Breakdown
- 0 Buy Ratings, 4 Hold Ratings, 5 Sell Ratings.
- Consensus Price Target
- $7.31 (93.5% Upside)
