CHGG

Chegg Inc

TMT


Presented:10/01/2020
Price:$74.51
Cap:$9.26B
Current Price:$1.63
Cap:$0.17B

Presented

Date10/01/2020
Price$74.51
Market Cap$9.26B
Ent Value$9.25B
P/E Ratio149020x
Book Value$4.02
Div Yield0%
Shares O/S124.31M
Ave Daily Vol3,039,444
Short Int11.43%

Current

Price$1.63
Market Cap$0.17B
Chegg, Inc. engages in the operations of learning platform for students. It intends to empower students to take control of their education and help the students study, college admissions exams, accomplish their goals, get grades, and test scores. The firm offers required and non-required scholastic materials including textbooks in any format; access to online homework help and textbook solutions; course organization and scheduling; college and university matching tools; and scholarship connections. Its services include Chegg study, writing, tutors, and math solver. The company was founded by Osman Rashid and Aayush Phumbhra on July 29, 2005 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Chegg Inc (CHGG)

Highlights

The presenter is long shares of Chegg Inc (CHGG), the provider of textbook rentals, online tutoring and other student services. Despite a recent sell-off, the company overall has been aided by COVID-19. In his view, the business is still performing well and bearish concerns around lower enrollment and password sharing are overblown. From a core business perspective, he believes there will be continued subscriber upside, following a great Q2 earnings report, and that APRU should begin to stabilize and could eventually begin to grow. Applying a 15x multiple to 2021 revenue estimates, he sees a price target of $90/share or ~23% upside. 

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Idea Discussion

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