2 ms·
Don't they still have their base business model with textbook rentals? 99% loss seems like an overreaction?
by hparadiz 2y ago
Don't they still have their base business model with textbook rentals? 99% loss seems like an overreaction?
- dehrmann 2y agoYeah, I'm not buying the narrative yet. https://finance.yahoo.com/quote/CHGG/financials/ https://finance.yahoo.com/quote/CHGG/financials/ Revenue's down 10% from a year ago. Annual revenue is flat-ish since 2020. It's been breaking even for a while now. ChatGPT might be an excuse or a contributor, but the real issue seems to be with management not turning on profit for what should be a mature business with a straightforward business model.
- kibibu 2y agoTheir main business model isn't textbooks though; it's "homework help".
- kelnos 2y agoI feel like the company was wildly overvalued; dropping 99% of its market cap might be a reasonable correction, and accurately reflect the value of the textbook rental business.