Seems a good risk/reward trade-off, but what about the compensation of the Executive Co-Chairman and the CEO that amounts for about USD 2M between the two of them? It would be worth to see how much equity they own, and at what price ther got it.
I agree the market overreacted, especially with the over hype of AI/GPT in general, but the one thing I am concerned that could hamper subscriber growth is the reported decline in questions asked on their new AI platform. Q1 had 9mm questions asked compared to Q2 of 7mm. That tells me students do not find the AI platform as helpful as before that might lead to a continuation of a decline in subscribers and overall growth. Another red flag are the negative app reviews the past few months reiterating that the AI platform experience is poor. Perhaps they are working on these issues and can turn around the user experience and engagement, but I believe it will take time (and money) which should be expected as they rolled it out recently and is obviously is very complex. Thank you for your commentary and numbers breakdown, an area that I am completely lacking in. I am a believer and long for the long term! I try and do the opposite of what the market does when I see value. I did that with FWRD a few months ago. I didn't catch the bottom and felt sick for a couple of weeks, but when the market admits it was wrong, it is the greatest feeling. It takes courage to purchase at these levels, but with analysis such as yours, it gives you strength to hold the line.
Seems a good risk/reward trade-off, but what about the compensation of the Executive Co-Chairman and the CEO that amounts for about USD 2M between the two of them? It would be worth to see how much equity they own, and at what price ther got it.
Noted
I agree the market overreacted, especially with the over hype of AI/GPT in general, but the one thing I am concerned that could hamper subscriber growth is the reported decline in questions asked on their new AI platform. Q1 had 9mm questions asked compared to Q2 of 7mm. That tells me students do not find the AI platform as helpful as before that might lead to a continuation of a decline in subscribers and overall growth. Another red flag are the negative app reviews the past few months reiterating that the AI platform experience is poor. Perhaps they are working on these issues and can turn around the user experience and engagement, but I believe it will take time (and money) which should be expected as they rolled it out recently and is obviously is very complex. Thank you for your commentary and numbers breakdown, an area that I am completely lacking in. I am a believer and long for the long term! I try and do the opposite of what the market does when I see value. I did that with FWRD a few months ago. I didn't catch the bottom and felt sick for a couple of weeks, but when the market admits it was wrong, it is the greatest feeling. It takes courage to purchase at these levels, but with analysis such as yours, it gives you strength to hold the line.
Good points, bullish on Chegg
Agreed
Thx for watching