Tuesday's selloff in Chegg shares exposed some investors to the potential drawbacks of artificial intelligence
Tuesday's selloff in Chegg shares exposed some investors to the dark side of artificial intelligence, igniting concerns about how the latest technology craze may be putting some companies' revenue sources in danger. The latest tumult for the education technology stock kicked off Monday evening after management highlighted how ChatGPT is hindering its growth. Shares were last down more than 49%.
"AI could actually be a catalyst, but right now the Street's essentially on the fence in terms of who the winners and losers are outside of the big tech arm," said Wedbush Securities' Dan Ives. "This is all a fork-in-the-road period in terms of figuring out who the winners and losers are." Who's at risk from AI Firms like Atlassian and Gitlab may face some of the biggest threats ahead, given AI's ability to write software, said Baird's Ted Mortonson.
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