You Can Blame This Stock Selloff on ChatGPT
Shares of Chegg, a study-materials provider, fell nearly 50% premarket on May 2, 2023 after the company stated that the popularity of chatbots might be impacting its ability to attract customers.
Chegg's CEO Dan Rosensweig said that while the company had not initially seen any noticeable impact from ChatGPT on its new account growth earlier in the year, things had changed by March.
"We now believe it's having an impact on our new customer growth rate," Rosensweig explained.
The rise in student interest in ChatGPT has investors concerned about Chegg's ability to compete in the market. Chatbots and artificial intelligence are becoming increasingly popular, but their impact on businesses and the stock market is uncertain.
