2 Reasons to Buy This Beaten-Down Growth Stock Right Now
Chegg (NYSE: CHGG) is a digital student learning platform that offers digital and physical textbook rentals, online tutoring, and other student services in the U.S. and abroad. It's no surprise then that students flocked to the platform at the onset of the pandemic as schools turned to at-home learning. As a result, Chegg's stock price shot up from $29 a share in early March 2020 to $87 by August.
However, as the coronavirus pandemic comes under control and billions of people get vaccinated, schools worldwide have (or are planning to) bring students back to campus. That is partly the reason that investor enthusiasm for the online learning platform has waned. The stock price fell 20% in the last month alone and almost 35% from its peak of $113 a share. The sell-off could also be related to the market losing some interest in growth stocks generally at the moment.
I think the selling on Chegg is overdone. Here are two reasons to buy this beaten-down growth stock.
Source Fool.com
