Down 99%! This section of $ 1 Penny crushed to artificial intelligence (AI) Boom

Revozolity intelligence (AI) Revolution is in the perfect swing and I think there will be a few business models interrupted in the coming years. Indeed, it is already, including Penny’s participation Chegg (NYSE: CHGG).

In 2021, the Internet-education company had $ 113 and the Cap Cap in the $ 14bn region. Now, those figures are standing for $ 1 and $ 112kindrespectively.

In other words, the stock lost 99% of its value!

What happened to the heck?

For those unusual, the Chegg provides the TextBook employment, educational education, study aids, and home aid, primarily for college students on its registered platform.

Unfortunately with Chegg, these kinds of things they can find from Ai free chatbots. In fact, as Chatgpt was discharged from November 2022, stock was made to collide with 96%. Therefore rather than direct link.

In Q4 2022, the company has reported $ 205m income. In Q1 2025, now under the supervision of the amount available at approximately $ 115m. Therefore there have been a great deterioration for a few years ago.

At that time, the number of subscribers has fallen from 5m to Q4 2002 to 3.6m on Q4 2024.

Double whammy!

But here is what the plan grows, not in a good way of chegg. You see, the increasing AI bots like Chatgpt has not only threatened Chegg’s business model. It is also harmful to Google search state because people may find the information they want by asking AI Bot (that way through those ads on the page search pages).

In response, Tech Giant Roll Out Ai Overnviews (AIO) on May 2024. These are the abbreviations produced by AI from the top results, give users with short answers to their questions without going.

Woes, Chegg says Aiio Sune “The main impact“On traffic to board on its site. The unregistered traffic dropped from 49% on January 2025, very low from 8% reduction in Q2 2024.

As the company puts, “Google Aio converted Google from “New Engine” into “Answer Engine,” Displaying the Content AI is available on Surright Sites as Chegg“In other words, the firm says Google uses its contents while driving a small traffic on its site.

The Company has announced that it is amazing Alphabet-Do getogle.

Fitness to take

To be a reality, Chegg is just looking for product development. Included AI and the study of the machine in the stack of its product, while its language learning service (busuu) grows strongly.

At the same time, the company said it started its “Process for Strategic Review“. That sounds like it can be open to sale for me. If so, maybe you will be found in higher equivalent than $ 112m.

I wish the good luck of the chegg, but this stock is very dangerous for me.

Very widely, acts as legend to monitor with AI disorder. In addition, I think it’s important to make sure that the software / technical company companies are in danger of being disrupted by AI. Technology may occur positively for the most important destruction as creation.