Tuesday’s Headlines: Chegg Stock is Falling Fast

Tuesday’s Headlines: Chegg Stock is Falling Fast

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Upstart Holdings (UPST) +11.4%

Roku Inc. (ROKU) +11.0%

Teladoc (TDOC) +10.0%

DraftKings (DKNG) +9.6%

Stitch Fix (SFIX) +8.0%

Moving Down ⬇️

Prologis Inc. (PLD) -4.5%

Howard Hughes Corporation (HHC) -3.2%

Brown-Forman (BF.B) -3.1%

Vanguard REIT ETF (VNQ) -2.4%

FactSet (FDS) -2.2%

1. Chegg (CHGG) stock is tumbling rapidly today following the release of its first-quarter earnings report last night after market close. The educational technology company is currently down over 36% in pre-market trading. Surprisingly, Chegg actually beat analyst estimates for earnings and barely missed on revenue, posting earnings per share (EPS) of $0.32 on revenue of $202.2 million against respective predictions of $0.24 and $203 million. The real issues began when the company slashed its annual forecast — one which previously righted a similar stock sell-off in February. Revenue expectations were cut by around $100 million, with low student numbers cited as the main reason for this adjustment. CEO Dan Rosensweig stated that “more people are shifting their priorities towards earning over learning” and that this has “made forecasting at this time challenging.” To find out more, click here.

2. Warren Buffett, the famed CEO of Berkshire Hathaway (BRK.B), hosted the company’s annual shareholders meeting over the weekend and revealed that he added $600 million worth of Apple (AAPL) shares to the conglomerate’s portfolio last quarter. Apple — already Buffett’s largest holding at close to 40% of Berkshire’s portfolio — dipped for a period of three days at the end of March and Buffett duly responded by seizing the opportunity to acquire shares at a discount. “Unfortunately the stock went back up, so I stopped. Otherwise who knows how much we would have bought?” said Buffett on Sunday, showing that the ‘Oracle of Omaha’ still wholeheartedly believes in the value Apple has to offer to investors. Read more on the story here.

3. Speaking of Apple (AAPL), the Cupertino-based Big Tech firm has been hit with yet another antitrust charge from its long-time regulatory nemesis — the European Union (EU). This latest charge is in relation to Apple’s mobile wallet on its devices, and an alleged restriction of access for rival companies. EU antitrust chief Margrethe Vestager stated that “we have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple's devices.” Should these allegations be proven to be true, Apple could be facing hefty fines of up to 10% of its global turnover and may have to open its payment system even further to its competitors. These allegations come only a year after similar claims were made about Apple’s anti-competitive practices with regard to music streaming. Read more here.

Pádraig BolgerPádraig Bolger

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