CHGG Should I Buy
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Chegg Inc (CHGG) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company's recent financial performance shows significant revenue decline and challenges in its core business, despite some restructuring efforts. Technical indicators and trading sentiment do not suggest a compelling entry point. While the stock has potential for short-term gains, it lacks strong long-term growth drivers currently.
The technical indicators for CHGG are bearish. The MACD histogram is negative and expanding downward, RSI is neutral at 20.479, and moving averages are bearish with SMA_200 > SMA_20 > SMA_5. The stock is trading below key support levels, with S1 at 0.587 and S2 at 0.525, indicating further downside risk.
The company also exceeded analysts' expectations in Q4 earnings despite a challenging environment.
Chegg's Q4 revenue declined by 49% YoY, and adjusted EBITDA dropped by 65% YoY, reflecting significant challenges in the online education sector. Gross margin decreased to 57.95%, and the stock has been underperforming with a regular market change of -7.73%.
In Q4 2025, Chegg's revenue dropped by 49.36% YoY to $72.7 million. Net income improved to -$32.8 million, up 435.56% YoY, but the company remains unprofitable. EPS increased to -$0.01, up 400% YoY, while gross margin dropped to 57.95%, down 15.54% YoY.
No specific analyst rating or price target changes were provided. However, the company's financial struggles and restructuring efforts suggest mixed sentiment among analysts.
