The impact of AI is probably being pushed out to 2024 and beyond in terms of material business impact for Chegg. The impacts on their reported financials will really start to roll in probably with Q4 because all the universities and colleges are kind of empty right now or at least much lower student basis. At today's price, after as you say, after they've given back everything, this is a company that is trading at about six times trailing free cash flow. Even if they're only half as successful as they plan, it still moves from six times to 10 times, which would be cheap. You get a 67% return on your investment before actually growing themselves. And then the question I
Earnings from Chegg, Celsius, and Nelnet show why it pays to watch cash flow and how businesses can shore up when there’s cash on hand.
(00:21) Jim Gillies and Dylan Lewis discuss:
- Celsius incredible top and bottom line results, but why investors should pay attention to the energy drink maker’s relationship with Pepsi and accounts receivable. - Whether Chegg can harness AI for its education offerings. - Why Nelnet’s slow and steady Berkshire approach continues to pay off.
Companies discussed: CHGG, NNI, CELH
Host: Dylan Lewis Guests: Jim Gillies Engineers: Dan Boyd
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