CHGG
CHEGG, INC.
stock NYSE

Chegg is not going bankrupt. Busuu + content licensing to LLMs will save $CHGG and 3x its market cap.
$CHGG – Deep Value + Hidden Gem Inside (Busuu) = 3-4x Setup
Just opened a large position in Chegg ($CHGG). Here's the thesis:
Chegg is an edtech stock trading at a insanely cheap $100M market cap. This is due to fears of insolvency and their core offering (Q&A tutoring) becoming obsolete.
TLDR: Chegg declined 99% from it's pandemic highs. Everyone assumes it will go bankrupt. This is where you can exploit their assumptions. It's not going bust.
Major opportunities generating revenue NOW at Chegg
Underneath the decline of its legacy Q&A tutoring business lies real value and a pivot plan already in motion.
1. Busuu = Duolingo’s overlooked competitor, easily worth 2x Chegg's current market cap
Busuu is Chegg’s language learning app — similar to Duolingo, but with 120M+ users, real curriculum, and live tutors.
It did $48M in 2025 projected revenue, grew 7% YoY, and is profitable.
Duolingo trades at 25x revenue. I’m not asking for that.
Give Busuu a 4x multiple (conservative) and it’s worth ~$200M alone — 2x Chegg’s current market
2. Licensing to LLMs = new revenue stream unlocked
In Q1 2025, Chegg started licensing its content library to two major LLMs, generating $4M already, and guiding $7M+ for Q2.
This could become a recurring, high-margin revenue stream.
Source: https://www.msn.com/en-us/money/companies/chegg-targets-48m-busuu-revenue-and-110m-cost-savings-in-2026-as-restructuring-accelerates/ar-AA1ECrtd
3. They’re not in denial — they’re cutting hard.
Laid off 22% of staff, closed expensive offices, and slashed wasteful product R&D. Estimated savings of $50-60M.
Cost structure is shrinking in line with declining core biz, while reinvesting in Busuu and licensing.
4. The core business is declining, but that’s ok
Chegg’s Q&A model (Indian tutors answering student homework) is being disrupted by ChatGPT. That part's real but is still producing positive cash flow.
5. Balance sheet is strong
$60M+ in net cash/investments
No real bankruptcy risk — they’re not burning uncontrollably, they’re adjusting.
You’re paying $100M for $60M in net assets + a $150M business + LLM licensing upside + existing cash flowing business.
Risk/Reward:
This is an arbitrage opportunity IMO. Most people wrote them off. I get it.
But between content licensing + Busuu ($48M 2025 revenue up 7% YOY), this business is not going bankrupt. It is priced as if it will, and therefore you can exploit that.
Busuu alone, if sold tomorrow, should sell for at least $150M at worst and $300M in a best case scenario. Probably a good bit more.
With a sub $100M market cap, this doesn't make sense. Especially with $60M+ in net assets.
Yes, core biz is declining. But at ~0.25x revenue and below asset value, this is what value looks like.
This is an opportunity. Even if core business becomes less needed, they're still going to be able to grow and sell Busuu, license their massive data sets, and have $63M on the balance sheet. Plus, they're aggressively cutting staff and costs and engaged with Goldman Sachs to ensure they find a path forward.

management and Goldman Sach orchestrated the stock's rapid fall to $0.40s. i am happy the the Q1 earnings call. I went heavy on CHGG.

Chegg is not going bankrupt. Busuu + content licensing to LLMs will save $CHGG and 3x its market cap.

Chegg is not going bankrupt. Busuu + content licensing to LLMs will save $CHGG and 3x its market cap.
$CHGG – Deep Value + Hidden Gem Inside (Busuu) = 3-4x Setup
Just opened a large position in Chegg ($CHGG). Here's the thesis:
Chegg is an edtech stock trading at a insanely cheap $100M market cap. This is due to fears of insolvency and their core offering (Q&A tutoring) becoming obsolete.
TLDR: Chegg declined 99% from it's pandemic highs. Everyone assumes it will go bankrupt. This is where you can exploit their assumptions. It's not going bust.
Major opportunities generating revenue NOW at Chegg
Underneath the decline of its legacy Q&A tutoring business lies real value and a pivot plan already in motion.
1. Busuu = Duolingo’s overlooked competitor, easily worth 2x Chegg's current market cap
Busuu is Chegg’s language learning app — similar to Duolingo, but with 120M+ users, real curriculum, and live tutors.
It did $48M in 2025 projected revenue, grew 7% YoY, and is profitable.
Duolingo trades at 25x revenue. I’m not asking for that.
Give Busuu a 4x multiple (conservative) and it’s worth ~$200M alone — 2x Chegg’s current market
2. Licensing to LLMs = new revenue stream unlocked
In Q1 2025, Chegg started licensing its content library to two major LLMs, generating $4M already, and guiding $7M+ for Q2.
This could become a recurring, high-margin revenue stream.
Source: https://www.msn.com/en-us/money/companies/chegg-targets-48m-busuu-revenue-and-110m-cost-savings-in-2026-as-restructuring-accelerates/ar-AA1ECrtd
3. They’re not in denial — they’re cutting hard.
Laid off 22% of staff, closed expensive offices, and slashed wasteful product R&D. Estimated savings of $50-60M.
Cost structure is shrinking in line with declining core biz, while reinvesting in Busuu and licensing.
4. The core business is declining, but that’s ok
Chegg’s Q&A model (Indian tutors answering student homework) is being disrupted by ChatGPT. That part's real but is still producing positive cash flow.
5. Balance sheet is strong
$60M+ in net cash/investments
No real bankruptcy risk — they’re not burning uncontrollably, they’re adjusting.
You’re paying $100M for $60M in net assets + a $150M business + LLM licensing upside + existing cash flowing business.
Risk/Reward:
This is an arbitrage opportunity IMO. Most people wrote them off. I get it.
But between content licensing + Busuu ($48M 2025 revenue up 7% YOY), this business is not going bankrupt. It is priced as if it will, and therefore you can exploit that.
Busuu alone, if sold tomorrow, should sell for at least $150M at worst and $300M in a best case scenario. Probably a good bit more.
With a sub $100M market cap, this doesn't make sense. Especially with $60M+ in net assets.
Yes, core biz is declining. But at ~0.25x revenue and below asset value, this is what value looks like.
This is an opportunity. Even if core business becomes less needed, they're still going to be able to grow and sell Busuu, license their massive data sets, and have $63M on the balance sheet. Plus, they're aggressively cutting staff and costs and engaged with Goldman Sachs to ensure they find a path forward.

management and Goldman Sach orchestrated the stock's rapid fall to $0.40s. i am happy the the Q1 earnings call. I went heavy on CHGG.

Chegg is not going bankrupt. Busuu + content licensing to LLMs will save $CHGG and 3x its market cap.