The Internet has changed the world. There are numerous jobs available, which would have been unimaginable until the era of computers. Anyone can amass a fortune without serious expenses if they understand internet industries and have the will and brains to conquer them. You could begin with so little and achieve so much. Chegg is one of the best examples of it.
This company started as an online textbook hub for college students. Although it still sells discounted textbooks, these days Chegg’s expanding portfolio includes online tutors, test prep, and much more.
Chegg calls itself a “direct-to-student learning platform.” While its digital learning platforms are already growing, management expects the pandemic will boost the stock further. According to CEO Dan Rosensweig, in every industry, a crisis often accelerates the inevitable, and that is what’s happening in higher education.
The stock’s first-quarter revenue skyrocketed by 35%, with its services sales rising by 33%. Chegg projected at the time that its second-quarter subscriber growth would surpass 45%.
Furthermore, analysts expect the company’s fiscal 2020 sales to jump 35% and hit $552.65 million, which would overcome FY19’s 28% expansion. And another 23% growth may follow in FY21. Overall, Chegg’s adjusted full-year earnings may surge forward by 33% and 22%, respectively, in the next two years, according to experts’ estimations.
How much did Chegg gain so far?
The stock skyrocketed by more than 700% in the last five years. Chegg is a good choice for longer-term investors choosing to bet on the future of education becoming more digital. Considering how costs and student debts are growing out of control, that’s a real possibility. Don’t forget coronavirus, which will likely cause schools to look different no matter what happens down the road.
Last year, the company generated $24 billion in global revenues. Experts predict it will blast through the roof to $77.6 billion by 2020. Investor Mark Cuban stated that Chegg would produce “the world’s first trillionaires.” However, that will leave plenty of money for regular investors if they make the right trades early.