Pearson Shares Slide after Chegg’s Warning on ChatGPT
The shares of Pearson, the education publisher, experienced a fall on Tuesday after US firm, Chegg, warned over the impact of AI chatbots on its homework-help services while providing online guidance for students preparing for tests. The shares of Chegg were down 42% in pre-market trade after it revealed that student interest in ChatGPT had witnessed a significant spike since March. The company stated in its first-quarter earnings release that it now believes that this spike in interest is having an impact on its new customer growth rate. Chegg reported a 7% year-over-year decline in its total net revenues which amounted to $187.6m.
Pearson shares were down by 7.7% at 819p as at 1050 BST.
