Chegg is an internet stock. This company started as an online textbook hub for college students. However, it managed to become very successful in a few years. While Chegg still sells discounted textbooks, these days, the company’s expanding portfolio includes online tutors, test prep, and so much more.
This company managed to find its niche in the market. It calls itself a “direct-to-student learning platform.” While Chegg’s digital learning platforms are already growing, the firm’s management expects the pandemic will boost the stock further. CEO Dan Rosensweig noted that, in every industry, a crisis often accelerates the inevitable, and that is happening in higher education as well.
Instead of suffering losses as so many companies did during the pandemic, Chegg flourished. The stock’s first-quarter revenue rallied by 35%, with its services sales jumping by 33%.
Furthermore, Chegg announced that its second-quarter subscriber growth might surpass 45%. Analysts expect the company’s fiscal 2020 sales to surge forward by 35% and hit $552.65 million. That would overcome FY19’s 28% expansion. Another 23% growth may follow in FY21.
What do the analysts advise?
According to experts’ estimations, the stock’s adjusted full-year earnings may surge forward by 33% and 22%, respectively, in the next two years.
The company amassed $24 billion in global revenues last year. And in the previous five years, the stock increased by more than 700%. Experts predict its net worth will surpass $77.6 billion by 2020.
According to Investor Mark Cuban, Chegg has the potential to produce “the world’s first trillionaires.” That will still leave plenty of money for regular investors if they make the right trades early.
Analysts think that Chegg is an excellent choice for longer-term investors, choosing to bet on the future of education becoming more digital. That’s a real possibility, considering how costs and student debts are growing out of control. Furthermore, coronavirus will likely cause schools to look different no matter what happens in the future.