Should I buy Chegg stock in 2025? NZ Insights & Tips

What is Chegg?

How much is the Chegg stock?

The price of Chegg stock is rising this week. As of today, Chegg is trading at $0.92 USD, up 6.25% in the last 24 hours, but down 7.43% over the week. The company holds a market capitalisation of $97.78 million USD and sees an average daily trading volume of 2.85 million shares over the past three months. With no dividend yield and a negative P/E ratio, Chegg's stock beta stands at 1.75, indicating significant volatility. For New Zealand investors, this adds both risk and the potential for sharp price movements within the fast-evolving education technology landscape.

Our full analysis on the Chegg stock

Having thoroughly reviewed Chegg Inc.'s (CHGG) latest financial results and examined three years of its stock performance, our proprietary multi-factor approach merges key financial indicators, technical signals, cross-market data, and comparative benchmarks to provide an informed perspective. Chegg has demonstrated notable resilience amid sector disruption, and with recent strategic shifts underway, attention is now turning to its risk-reward profile in the educational technology sector. So, why might Chegg stock once again become a strategic entry point into EdTech in 2025?

Recent Performance and Market Context

Chegg shares have experienced significant volatility, reflecting broader sector turbulence as EdTech companies reassess their value propositions in a post-pandemic and AI-infused environment. As of 30 May 2025, Chegg trades at $0.92 USD—substantially off its 52-week high of $3.92, but up 6.25% intraday, signalling potential for a short-term rebound from oversold conditions. While the past year has seen a steep decline of -75%, the stock's recent stabilization near its multi-year lows, along with a price surge on positive news, highlights the market’s enduring interest in turnaround narratives.

Several positive recent developments stand out. Chegg’s Q1 2025 revenue of $121.4M surpassed consensus expectations, showcasing operational strength even as bottom-line numbers faced pressure. Furthermore, the company’s decisive restructuring—reducing its workforce by 22%—exemplifies prudent adaptation to the evolving landscape driven by generative AI and emerging global competition. This proactive management response has been well-received in market commentary, underscoring Chegg’s willingness to defend profitability and preserve long-term viability.

The macroeconomic context further highlights opportunity: global education technology spending continues to grow, propelled by digital adoption trends and the resumption of academic mobility. In particular for New Zealand, where students increasingly leverage global EdTech tools, Chegg’s established US-selected platform remains highly relevant.

Technical Analysis

Technical indicators currently depict Chegg as a pivotal stock consolidating at historically low valuations. The 14-day RSI stands at 55.20, reflecting a neutral zone that typically precedes directional breakouts. The Williams %R at -54.50, however, is flashing a buy signal, which, when coupled with upward momentum in the 20-day ($0.83) and 50-day ($0.69) simple moving averages (both indicating buy signals), suggests that Chegg may have begun a constructive technical base-building phase.

Key technical supports are well-defined: the major support at $0.44 (the 52-week low) has repeatedly attracted buyers, while the $1.00–$1.02 zone near the 100-day moving average looms as a psychological and technical resistance. The MACD, while still showing a modest sell signal, could be on the verge of crossover should upward price momentum continue. The ADX at 27.42 indicates a neutral but strengthening trend, suggesting that a bullish reversal may be in the making—especially salient for NZ investors attuned to high-beta US technology opportunities.

Overall, the technical landscape argues for increased attention to Chegg as a value proposition at a discounted entry point, particularly for those seeking exposure ahead of a decisive trend change.

Fundamental Analysis

Despite facing short-term headwinds, Chegg’s fundamentals remain compelling for long-duration, contrarian investors. The company’s Q1 2025 revenue of $121.4M notably beat market expectations, while a healthy adjusted EBITDA of $19M and solid free cash flow of $16M highlight underlying business resilience—a critical quality during market realignments.

From a valuation perspective, Chegg stands out: its price-to-sales ratio (TTM) is a mere 0.17, with price-to-book at 0.53. Such metrics suggest the stock is trading at a substantial discount to sector averages, even accounting for ongoing structural adjustments. With global EdTech peers often commanding multiples above 2x sales, the current market pricing appears to reflect excessive pessimism rather than balanced assessment—paving the way for mean-reversion upside.

Chegg’s core strengths—including its global brand, loyalty among digitally active tertiary students, and a portfolio of services (Chegg Study, Writing, Math, Busuu) that remain highly differentiated—deserve emphasis. While generative AI constitutes a real competitive threat, Chegg’s ongoing pivot to integrate AI into its offerings and new partnership initiatives have the potential to reshape perceptions and restore growth trajectories.

Notably, Chegg’s strategic review and workforce restructuring underscore management’s resolve to preserve capital and reposition the company in a transforming market. This agility historically bodes well for companies navigating cyclical lows, suggesting the potential for earnings upside as headwinds abate.

Volume and Liquidity

Chegg’s average daily trading volume of 2.85 million shares underscores sustained market interest. Such liquidity is advantageous for New Zealand investors seeking dynamic entry and exit points, as it reduces slippage and provides a robust platform for price discovery.

With a public float of 98.94 million shares—constituting 92.8% of total shares outstanding—valuation remains flexible and responsive to both fundamental and sentiment shifts. The current short interest (10.84 million shares, or 10.95% of the float) further amplifies the possibility of a short squeeze, especially if positive catalysts emerge. This volatility, when managed with prudent position sizing, can be a boon for risk-tolerant, opportunity-focused investors.

Catalysts and Positive Outlook

Looking ahead, several bullish catalysts could propel Chegg stock higher in the coming quarters:

• Product Innovation: Chegg is actively integrating proprietary and third-party AI tools into its learning services, aiming to deliver enriched, adaptive learning experiences that address generative AI’s threat head-on.
• International Expansion: As global learners increasingly turn to online support, Chegg’s platform stands to benefit from heightened adoption outside the US. This is particularly relevant to growth markets in Asia-Pacific, including New Zealand’s EdTech-savvy student population.
• Strategic Partnerships: Chegg’s ongoing strategic review paves the way for potential alliances or asset sales that could crystallise value and refocus resources on higher-growth verticals.
• Cost Restructuring: The recently announced workforce reduction not only streamlines operations but also enhances operating leverage, setting the stage for margin recovery and positive earnings surprises.
• Sector Tailwinds: The EdTech sector globally is forecasted to return to double-digit growth as institutions reimagine hybrid and digital learning models, bolstered by supportive regulatory and fiscal frameworks.
• ESG Momentum: Chegg’s efforts in providing accessible, affordable education dovetail with global social responsibility trends, appealing to a new generation of conscious investors.

Should any of these catalysts materialise, the ensuing rerating could be swift, given the compressed valuation and heightened investor focus on innovation-led turnarounds.

Investment Strategies

Chegg’s current positioning offers several attractive strategies across investment horizons:

• Short-Term Approach: For active traders, Chegg is consolidating just above strong technical support ($0.44) and below resistance ($1.00–$1.02). Momentum indicators and the potential for short-covering rallies suggest favourable risk/reward for tactical positioning, especially if near-term news flow remains positive.
• Medium-Term Perspective: Investors with a 6–12 month outlook may see opportunity ahead of likely product launches or partnership announcements. The anticipated benefits from recent cost restructuring and growing traction for AI-enhanced study tools could support a progressive rerating toward consensus price targets ($1.00–$1.19).
• Long-Term Strategy: The stock’s discounted valuation and strong brand offer contrarian appeal for holders willing to look beyond immediate disruption. History often rewards patient investors who accumulate quality assets at moments of sector-wide pessimism, with Chegg being well placed should EdTech adoption resume its secular climb.

Importantly, technical signals reinforce the view that these strategies could benefit from ideal entry positioning—at, or just above, cyclical lows and in advance of projected growth catalysts.

Is It the Right Time to Buy Chegg?

In summary, Chegg Inc. stands at a crossroads, yet displays an array of compelling characteristics:

• Historically low valuation metrics (P/S, P/B) signal deep discounting versus industry averages.
• Evidence of resilient cash generation and operational discipline even through macro and sector headwinds.
• Robust trading liquidity and substantial short interest may fuel rapid upside on positive news.
• Multiple forward-looking catalysts—including technological innovation, global expansion, and cost rationalizations—offer the prospect of medium- to long-term revaluation.
• Technical signals and market structure further validate current price levels as a potential strategic entry zone.

While transformation risks remain, the extent of recent discounting appears to overstate short-term threats and underrecognize Chegg’s capacity for adaptation. For NZ investors keen on high-upside opportunities in the EdTech sphere, Chegg seems to represent an excellent opportunity for exposure at attractive levels, with the fundamentals and technical landscape jointly justifying renewed interest.

Ultimately, Chegg’s combination of discounted pricing, strategic reorientation, and sector-linked upside may see the stock entering a new bullish phase—making it particularly worthy of close consideration for forward-thinking investors seeking a blend of value and growth in 2025.

How to buy Chegg stock in New Zealand?

Buying shares in Chegg (CHGG) is now both straightforward and secure for New Zealand investors, thanks to a wide range of regulated online brokers. Whether you're looking to directly own Chegg stock via spot buying, or prefer to trade its price movements through Contracts for Difference (CFDs), both methods are accessible with just a few clicks. Each approach has distinct features depending on your investment style. To help you make the best decision, you'll find a detailed broker comparison further down the page.

Spot buying

Spot, or cash, buying means purchasing actual Chegg shares that you then own in your investment account. With NZ brokers, fees typically involve a fixed commission per order, often ranging from NZD $3 to $8. For example, if the Chegg share price is around $0.92 USD (approx. $1.50 NZD based on current FX rates), a NZ$1,000 stake (roughly US$610) allows you to buy around 650 Chegg shares, factoring in a brokerage fee of about NZ$5.

Example scenario

✔️ Gain scenario: If the share price rises by 10%, your 650 shares would be worth NZ$1,100 (10% gain on NZ$1,000 invested, excluding currency movements and fees).
Result: +NZ$100 gross gain, i.e. +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on Chegg’s share price without owning the underlying shares. You can go long or short, and apply leverage to magnify gains (and losses). CFD providers make money via the spread (difference between buy/sell price) and may charge overnight funding if you hold positions longer than a day. For example, putting NZ$1,000 into a CFD position on Chegg with 5x leverage gives you NZ$5,000 market exposure.

Example scenario

✔️ Gain scenario: If Chegg's share price rises by 8%, your leveraged position delivers a return of 8% x 5 = 40%.
Result: +NZ$400 gain for a NZ$1,000 investment (excluding fees and forex impact).

Final advice

Before you invest in Chegg, it’s essential to compare brokers’ fees, trading conditions, and platform offerings—costs and features can vary significantly. The best approach depends on your objectives: cash buying suits long-term investors looking for direct ownership, while CFDs are geared towards active traders seeking to profit from short-term movements. For full details on costs and platforms, refer to our NZ broker comparison further down the page.

Our 7 tips for buying Chegg stock

The latest news about Chegg

Chegg stock rebounded intraday by 6.25% to $0.92 USD, with key technical buy signals emerging. On May 30th, 2025, Chegg shares saw a notable 6.25% upward movement during the trading session, reflecting a technically significant bounce near historic lows. Technical indicators are showing relative strength: the Williams %R and both the 20- and 50-day simple moving averages currently signal buying opportunities, positioning the stock above these shorter-term support levels. For New Zealand investors accustomed to high market volatility and seeking short-term momentum, this technical setup may warrant attention as it points to potential trading windows even amidst longer-term headwinds.

First quarter 2025 revenue for Chegg exceeded analyst expectations despite ongoing sector disruption. Chegg announced Q1 2025 revenue of $121.4 million, surpassing consensus estimates and delivering an adjusted EBITDA of $19 million as well as positive free cash flow of $16 million. While net earnings missed projections by a narrow margin, the topline beat demonstrates a degree of operational resilience. Notably, Chegg’s core online learning tools remain in demand, and its international presence—including digital services accessible to New Zealand students—supports its stable cash-generating ability despite fierce global competition from AI-driven platforms.

The company initiated a significant strategic restructuring with a 22% workforce reduction to improve cost efficiency. In May 2025, Chegg announced layoffs impacting 22% of its global staff, a move designed to streamline the business given declining revenues and the rapid transition in the online education space spurred by generative AI. The restructuring is expected to reduce costs and support free cash flow, which is a critical factor for investors from New Zealand’s market given their emphasis on corporate agility and cost management in challenging sectors.

Analyst consensus holds a “Hold” rating with target price at $1.00, suggesting limited downside and upside potential. Across global coverage, recent analyst updates place Chegg’s 12-month price target between $0.65 and $1.00, with a consensus “Hold” rating. This points to stabilized expectations despite the stock’s significant year-to-date decline, indicating that the market may have largely priced in current risks. For New Zealand portfolio managers and private investors, this signals a measured approach: while further downside appears somewhat contained, major catalysts for upside are yet to materialize.

Chegg’s suite of digital education services, including Busuu and Chegg Study, retains accessibility for New Zealand users. Despite headwinds in the US, Chegg’s digital educational services—including language-learning (Busuu) and study support platforms—remain available online to New Zealand consumers. Shifts in global strategy or product localization could directly impact the value proposition for Kiwi students and education sector partners. The continued international availability of its services provides a foothold for future regional growth, with any new strategic partnerships or regional adaptations potentially acting as catalysts for the stock.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.