Educational assistance platform. Stock fell 99%.
Chegg offered textbook solutions, homework help, and online tutoring to college students via a $14.95/mo subscription. When ChatGPT launched, students realized they could get the same answers instantly and for free. Chegg's subscriber count collapsed from 4.9M to under 1M. The company's stock dropped from $90+ to under $2. CEO Dan Rosensweig acknowledged AI's impact in a now-infamous earnings call that tanked the stock 48% in a single day.
OpenAI's ChatGPT provides instant homework help, step-by-step explanations, and tutoring across every subject — for free. Students abandoned Chegg overnight.
Peak: 4.9M subscribers, $95 stock price
ChatGPT launches publicly
Chegg earnings call mentions AI impact, stock -48% overnight
Subscribers drop below 4M, layoffs begin
Stock below $3, mass exodus accelerates
Stock under $1, effectively dead
Delisted from NYSE, assets sold for pennies in fire sale
Use any frontier LLM as a personal tutor. Upload textbook photos, paste problem sets, or describe concepts you're stuck on. The AI provides step-by-step solutions, explains underlying theory, and adapts to your level — for free.
Take a photo of the problem or type/paste it into ChatGPT or Claude
Ask for a step-by-step solution with explanations at each step
If the explanation is unclear, ask follow-up questions — the AI adapts to your level
For math/science, verify the final answer with Wolfram Alpha
Ask the AI to generate similar practice problems to reinforce the concept
Before exams, paste your study guide and ask the AI to quiz you
Solve this step by step, explaining the reasoning at each stage. I'm a second-year student, so use that level of detail: [paste problem here]
Explain [concept] to me like I'm a college sophomore. Start with the intuition, then build up to the formal definition. Use an analogy if it helps. Then give me a simple example.
I'm studying for a [subject] exam on [topic]. Generate 5 practice problems at increasing difficulty. Don't show solutions yet — I'll attempt them first and ask for help if stuck.