Chegg (CHGG) AI Stock Analysis

Chegg is currently unprofitable, as reflected by its negative EPS and negative P/E ratio. This indicates the business is not generating positive earnings for shareholders, and without evidence of a clear turnaround in profitability, the underlying financial picture remains weak. The current valuation is therefore driven more by expectations and sentiment than by earnings strength.

• Negative EPS of -0.96 shows the company is losing money on a per-share basis, signaling ongoing operational or structural challenges.
• A P/E ratio of -0.97 confirms that the stock is not supported by positive earnings, limiting traditional valuation support and increasing reliance on future improvement.
• Absent signs of improving margins or a path back to sustainable profitability, the financial profile leans toward elevated risk rather than earnings-driven upside.

Alternative data for Chegg is mixed but leans negative on core usage momentum. While web traffic remains sizable and job postings have increased, app downloads are down more than 20% month over month, suggesting weakening engagement or user acquisition on a key digital channel. Social media followership is broadly flat to slightly down on major platforms, indicating limited organic brand or user growth momentum.

• App downloads of an estimated 46,000 per day are down 20.7% month over month, a notable contraction in a critical funnel for user growth and engagement.
• Estimated monthly web traffic of 6.39 million visitors is meaningful, but without growth data, the decline in app downloads raises concerns about the stickiness and expansion of the user base.
• Job openings at 8, up 166.7% month over month, suggest some incremental investment or hiring, but the absolute level is modest and does not yet signal a major expansion; meanwhile, social media followings are largely flat to slightly declining on key platforms (Twitter/X, Instagram, Facebook), with only modest growth on TikTok and LinkedIn.

Overall, Chegg’s setup appears bearish despite a strong recent bounce in the share price. The company remains unprofitable, the stock trades below its 200-day moving average, and alternative data shows pressure on app downloads and only marginal social and hiring growth. Unless profitability trends improve and user growth re-accelerates, the recent rally looks more like a short-term rebound than the start of a sustained uptrend.

• Negative earnings, a sub-200-day moving average price, and weakening app download trends collectively point to elevated fundamental and execution risk.
• The recent sharp price increase may offer trading opportunities but, in the absence of clear evidence of improving profitability and user momentum, does not yet justify a structurally bullish stance.