Chegg's stock plunge on AI threat weighs on other online-education companies, as Duolingo shares tumble 10%

The big selloff in Chegg Inc.'s stock (CHGG) on the back of a downbeat revenue outlook is weighing on the shares of other online education companies. Chegg's stock plummeted 46.3% in morning trading, enough the pace the New York Stock Exchange's (NYSE) decliners, and put it on track to close at a six-year low. Elsewhere, shares of Duolingo Inc. (DUOL) tumbled 10.0%, of 2U Inc. (TWOU) shed 4.3%, of Coursera Inc. (COUR) slid 3.3% and Stride Inc. (LRN) gave up 3.2%. Among China-based education companies, the U.S.-listed shares of TAL Education Group (TAL) dropped 7.0%, of New Oriental Education & Technology Group Inc. (EDU) slumped 5.7% and Gaotu Techedu Inc. (GOTU) fell 5.8%. The stocks significantly underperformed the broader stock market, as the S&P 500 slipped 0.4%.

-Tomi Kilgore

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05-02-23 0953ET

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