Chegg Shares Dive

Chegg Shares Dive

Feb 15, 2014

CHEGG CHOKES: Chegg, the textbook rental company tumbled on its IPO back in November 2013, took an even bigger beating on February 14. Despite reporting Q4 2013 revenues of $77 million (a 12% increase from the same period last year) in what company chairman and CEO, Dan Rosensweig, called a "banner year," the company stock fell 22% to $6.17 by Friday's close. According to The Motley Fool, investors are upset at the company's 2014 forecast which calls for lower gross margins and higher net losses. Also worthy of note: Print revenue increased just 3% from the same period last year, while digital revenue jumped 70% to $16.7 million.

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