🦧 an ai-inspired plunge

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🎓 the education sector is down

open ai’s chat gpt is hurting the incumbent players in the education sector (more on chat gpt in my first post about it from december ‘22)

🦧 what's gpt anyways

sure, an ai chatbot can be fundamentally different from taking online courses or downloading e-textbooks, but the recent surge of chat gpt is cause for concern for the following tickers

1️⃣ CHGG (chegg)

• chief executive dan rosensweig admitted last week during chegg's earnings call that a "significant spike in student interest" in chat gpt was "having an impact on [our] new customer growth rate"

• as of writing, chegg shares are still down 43% since the earnings report last monday

2️⃣ DUOL (duolingo)

• share price plunged 10% on the same day chegg reported earnings, but as of writing, share price recovered, down only 4%

• imo: chat gpt won’t directly replace the gamification of language learning duolingo has crafted, but duolingo’s integration of gpt-4 in its service may drive up cost and hurt the bottom line in the near term

3️⃣ UDMY (udemy)

• share price plunged 5% on the same day chegg reported earnings, and as of writing, share price is down over 7%

• imo: it’s hard for udemy to become obsolete simply because of chat gpt’s rise in popularity

  • udemy’s known for its video content, an incredibly wide range of topics, and most importantly, it serves as a marketplace for educators and learners, which is fundamentally different from having to produce content themselves

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💡 something im thinking about

~45% of overall youtube viewing in the us is now happening on tv screens (click image)

as always, i’ll be bringing you news and opinions on what’s going on in the world!