Below 99%! This tenth action of $ 1 has been crushed by the artificial intelligence boom (AI)

The Revolution of artificial intelligence (ai) is in full swing and I think there will be a few business models interrupted by this technology in the coming years. In fact, there have already been some, including Penny Share CEGG (NYSE: CHGG).

In 2021, this online education company had a price of $ 113 shares and a market capitalization in the $ 14 billion region. Now, those figures are $ 1 and $ 112metrorespectively.

In other words, the action has lost 99% of its value!

What the hell has happened?

For those strangers, Chegg offers rents of textbooks, online tutoring, study resources and homework help, mainly for university students through their subscription -based platform.

Unfortunately for Chegg, these are the type of things that students can get more and more from ai Chatbots for free. In fact, since Chatgpt was launched in November 2022, the action has crashed 96%. Then there is a direct correlation.

In the fourth quarter of 2022, the company reported revenues of $ 205 million. For the first quarter of 2025, it is now guiding income of around $ 115 million. So there has been a significant decrease in recent years.

Meanwhile, the number of subscribers has fallen from 5 m in the fourth quarter of 2002 to 3.6 million in the fourth quarter of 2024. Chegg has also become without profitable during this period, with a net loss adjusted of $ 160 million in revenues of $ 617 million last year.

Double whatmy!

But this is where the plot greases, and not in the good way for Chegg. You will see, the emergence of generative bots such as Chatgpt not only threatened the Chegg business model. He also raised a risk to the Google Search Empire because people could obtain the information they want when asking for a bot of ai (overlooking all those ads in Google's search pages).

In response, the technological giant implemented the descriptions of ai (AIO) in May 2024. These are summaries generated by ai that appear at the top of the search results, providing users with concise responses to their consultations without requiring them to visit external websites.

A single Aios Aio Haas had a “Deep impact“In traffic that flows to its site. Non -subscriber traffic collapsed to 49% negative in January 2025, at least to the modest decrease of 8% that reported in the second quarter of 2024.

As the company says, “Google Aio has transformed Google with a “search engine” into a “response engine”, which shows content generated by Ia from third -party sites such as Chegg“In other words, the company says that Google is using its property content while driving less traffic to its site.

The company has announced that it is demanding Alphabet-Eneded Google.

Takeaway silly

To be fair, Chegg is only advancing with the development of products. He has integrated ai and automatic learning in his product battery, while his language learning service (Busuu) is growing strongly.

At the same time, the company said it is launching a “strategic review process“. It seems that it could be open to a sale for me. If so, it may be purchased for an assessment much greater than $ 112 million.

I wish that Chegg there is luck, but this action is too risky for me.

In more general terms, it serves as a history of interruption warning of ai. More than ever, I think it is crucial to ensure that software/technology companies in which we invest are not vulnerable to be interrupted by ai. technology is likely to cause both destruction value and creation.