Chegg (CHGG) Fell on Disappointing Earnings

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, its Investor Class fund ARTSX returned 7.60%, Advisor Class fund APDSX posted a return of 7.63%, and Institutional Class fund APHSX returned 7.62%, compared to a return of 6.07% for the Russell 2000 Growth Index. Both allocation and security selection drove the portfolio to outperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Artisan Small Cap Fund highlighted stocks like Chegg, Inc. (NYSE:CHGG) in the first quarter 2023 investor letter. Headquartered in Santa Clara, California, Chegg, Inc. (NYSE:CHGG) is a learning platform. On May 18, 2023, Chegg, Inc. (NYSE:CHGG) stock closed at $9.43 per share. One-month return of Chegg, Inc. (NYSE:CHGG) was -48.97%, and its shares lost 49.30% of their value over the last 52 weeks. Chegg, Inc. (NYSE:CHGG) has a market capitalization of $1.129 billion.

Artisan Small Cap Fund made the following comment about Chegg, Inc. (NYSE:CHGG) in its Q1 2023 investor letter:

“Chegg, Inc. (NYSE:CHGG) is a digital education platform. Shares fell after the company reported disappointing earnings results. While we have remained invested given our belief that the stock price selloff has been overdone given several tailwinds behind the company’s profit cycle— international expansion, opportunities to cross-sell the existing users and longer term changes in higher education (e.g., more remote learning, more focus on student outcomes, pressure on tuition)—we have been disappointed with the company’s recent fundamental results and are currently evaluating our thesis.”

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Chegg, Inc. (NYSE:CHGG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Chegg, Inc. (NYSE:CHGG) at the end of the fourth quarter which was 28 in the previous quarter.

We discussed Chegg, Inc. (NYSE:CHGG) in another article and shared the list of best education stocks to buy in 2023. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.