Chegg ($CHGG) is on a buying spree, first buying Cogeon for AI math technologies aimed at teaching high schoolers math, for $27.7 million in cash and contingencies, and now scooping up StudyBlue for $20.8 million, adding 500M pieces of content to its already massive library.
To put this in perspective, $CHGG spending nearly $50 million on new businesses means they spent the equivalent of 3 college textbooks and a trip to the concession stand at the movies.
Chegg has also made headlines over recent years by acquiring Notehall, a study and note marketplace featured on the hit TV show Shark Tank.
Is this a good thing?
Chegg seems to be a little overvalued at the moment, with analysts rating the stock at either Hold or Market Perform, and EPS at a $.17 loss (diluted). Even the blended price target of $26.05 is lower than its $28.41 close on 7/2/18. Keep an eye on this stock, but with no dividend payout, and StudyBlue not really having an impact on cash flow, it might be best to close the book and take a study break from this stock.