- After diving out of the gate yesterday, Chegg's (CHGG -8.5%) post-IPO plunge only worsened today. Shares have closed down 29% from an offering price of $12.50.
- With investors nervous about slowing online textbook rental growth in the face of rising e-textbook competition, as well as ongoing losses, CEO Dan Rosensweig has been talking up his company's efforts to evolve into a provider of higher-margin online education/learning services.
- Rosensweig states Chegg's digital businesses now account for 21% of his company's revenue, and carry an 80% gross margin, well above the ~30% GM posted by Chegg as a whole.
Chegg has another ugly day
Nov 14 2013, 16:04 ET