Wow rollercoaster earnings result day for CHGG

I have been following CHGG since the share price crashed in May 2023 (because of a comment about ChatGPT by the CEO). Its been a rollercoaster anyway and good to trade. I’ve accumulated recently into a long position while price is below $9.

Earnings due any minute. So today the price rose throughout the day rising nearly 5% to nearly $8.90. I was beginning to think it looked promising because I have some serious doubts about these results (which is why I’ve avoided mentioning it before close). I glanced at TradingView at close and price still up. I looked again and the price had dropped to below $8 in the after market (c**p I think). I think oh well and a minute later it is just over $9 and I think “oh ok” and then its $9.23 and now… its $8.00 (who said the after market was volatile!!) and as I type its $7.65!!

Still no idea what the results are are. It will be interesting to see. Earning days are definitely not boring

Listened to the earnings conference call and feel fairly positive long term. I suspect the price will be volatile so I’ve got no real expectations in the short term but longer term I’m more confident than I was that they are heading in the right direction.

To put it into perspective in April the price was more than double the current share price and I watch and trade CHGG with a view that it might get back towards the early 2023 level. I am not looking for it to increase 500%. My interest is whether this will be a decent recovery play in the medium to longer term. This company has free cash flow and 70% gross margin so it isn’t a basket case but the market panicked in May and my interest is just as a tradeable recover play with the potential for intra-day 10% rises.

Potentially the company could significantly increase its total potential market so there is good potential I’m just not relying on it.

I’m not looking to encourage anybody into CHGG but it is worth keeping on a watchlist

I have to laugh at the CHGG partnership/affiliate programme. So sign up for chegg learning tools and you get free subscription to doordash, tinder and com so you can study, hookup and then get a pizza. Oh student life

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Well disappointed by the response to CHGG’s earnings but then I look at NVDA and if Nvidia can drop over 2.5% today in addition to the 15% over the last couple of weeks am I really surprised by a bit of a drop in CHGG.

Overall after yesterdays results and conference call I’m more confident about CHGG being a recovery play but it isn’t a company I’m especially positive about. However, I’m interested to watch it (and trade it) as a working example of the impact of AI and how business are going to cope and adapt to an AI world. This it provides lessons that I can take to other investments and analysis

wow 5% rise at the open today after a very strong rise yesterday is very well after loading up on the post earnings drop

wow it is easy for this investing stuff to be stressful. CHGG is proving to be a great example.

So CHGG rose at earning triggering a lot of my take profit limit orders and had a rollercoaster time with the price all over the place. Then after the results it crashed to circa $7.40 having nearly touched $9 the previous day. I made a decision that I believed in the fundamentals for a recovery play so took 7.40 as a buy time. It then recovered to 8.50 only to drop back even to rest the $8 level and then broke above $9 only to drop back yesterday to $8.40!!! Great trading opportunities not a little stressful in terms of a long term holding. In the premarket today it is suddenly at 9.30-9.40 for no obvious reason!!!

I never use stop losses and this just highlights why but it is so hard to tell the difference between a stock that will bounce and is just being played with by the market and one that is dropping and will continue to keep dropping.

I’ve now found the reason: “Chegg has entered into an accelerated share repurchase agreement to repurchase $150 million of its common stock.”