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There aren’t any compelling reasons to buy Chegg now Chegg stock got overheated during the rally in growth stocks in early 2021. At its all-time high, shares raded at over 90 times earnings, which was clearly an unsustainable valuation for the company as it moved beyond pandemic lockdowns.

Consensus from 18 of the American Consumer Services analysts is that Chegg is on the verge of breakeven . They anticipate the company to incur a final loss in 2020, before generating positive profits of US$26m in 2021. The company is therefore projected to breakeven around 12 months from now or less.

Let’s look at some of the highlights which make Chegg stock a good buy : 87% brand recognition amongst U.S. college students. Chegg has indicated a pool of 102 million students as its market opportunity, of which they currently claim 6.6 million as subscribers. Revenue is growing at 57% year-over-year.