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.


ALSO READ: Etsy marches into Europe


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.

Important Reminder!

The Motley Fool Stock Advisor ranks as our #1 Best Investment Newsletter for the third year in a row.

Their stock recommendations continue to beat all of the other newsletters and they maintain a very high accuracy of their picks. Their 24 stock picks from 2018 have outperformed the market by an average of 44% as of July 7, 2019. Read that again. I didn’t say their stock picks are up an average of 44%, I said they have BEAT THE MARKET by 44%.

No other newsletter comes close to that. You may have seen the Motley Fool’ advertisements that their picks are up 367% compared to the market’s 80%. Is The Motley Fool’s Stock Advisor really as good as they claim?

Our results, at least since January 2016, suggest YES. You can now get their latest stock picks for ONLY $19/month or $99/year. But this is a special limited time offer. It expires tonight at midnight.

Get the Motley Fool's Latest picks

P.s. this offer is still backed by their 30-day guarantee

SHARE
Previous articleEtsy marches into Europe
Next articleDon’t put your finger in a socket with this energy stock

LEAVE A REPLY