Artificial intelligence (AI) has been making waves, and has helped catapult stocks like Nvidia (NVDA) into the ranks of $2 trillion companies - but at the same time, other companies have seen their business models take a hit from the rapid adoption of generative AI and ChatGPT. This includes online education companies that are witnessing an exodus of students who are instead pivoting to ChatGPT.
Specifically, Chegg (CHGG) is down 36.7% YTD, and is trading near its record lows. Some of the company’s woes are similar to former “stay-at-home” winners like Zoom Video Communications (ZM) and Teladoc Health (TDOC). The revenues of these companies surged during the pandemic-era lockdowns, but their growth has since fallen considerably - and in some cases, turned negative.
