Is Chegg Stock a Buy Now?

Artificial intelligence (AI) has been grabbing plenty of headlines recently, thanks to the rise of ChatGPT. And while many companies are benefiting from the craze, others haven't been so lucky. Online learning platform Chegg (NYSE: CHGG) is in the latter category, which isn't surprising. Chegg specializes in providing students with expert answers to textbook and homework problems, something apps like ChatGPT could make obsolete.

Still, management believes it can leverage AI to make its services even more valuable for students. If so, Chegg could benefit from AI in the long run, and the recent sell-off is far overdone. Chegg's shares are down by almost 60% year to date. That said, let's dig in a little deeper and decide whether investing in Chegg's stock right now is worth it.