3 ms·

Chegg was already down 75% from its ZIRP-induced peak before ChatGPT existed. There's hardly even correlation here, never mind causation.

• dehrmann 2y ago
  It might not even be ZIRP. It jumped right after March, 2020, so it might have always been a bad covid-related trade.
  • FreakLegion 2y ago
    March 2020 is when the Fed cut the federal funds rate to 0-0.25%, i.e. the beginning of COVID-era ZIRP. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone... (This after already shaving 0.5% off at the beginning of the month, two weeks earlier.)
    • dehrmann 2y ago
      Right, but did the price go up because money was free or bet on what the world would look like during and post covid?
      • FreakLegion 2y ago
        Both of course, plus quantitative easing and other factors. There was a lot of new money (QE) and not a lot of places to put it (ZIRP). In that context, companies like Chegg and Zoom were interesting bets and seemed to have more upside than, say, Netflix, which also had a strong couple years. But the whole market more than doubled in that time. The money had to go somewhere.
• n2d4 2y ago
  To be fair, 95% down since ChatGPT came to life is also a lot