AI Threat to Stock Prices Seen Spreading as Chegg, Pearson Sink
- Investors focus on downside from techology after Chegg warning
- Chegg shares tumble to lead education peers lower on Tuesday
Textbooks at the Chegg Inc. warehouse in Shepherdsville, Kentucky.
Photographer: John Sommers II/Bloomberg
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Investors are starting to see the downside from the rapid acceptance of artificial intelligence.
Shares of a California education company called Chegg Inc. plunged Tuesday after it warned that the quick rise to popularity of OpenAI’s ChatGPT tool is causing fewer students to sign up for its services. And that’s having ripple effects, driving shares of UK education publisher Pearson Plc down the most in more than a year.