CHGG: IPO that did not increase their bank account
I am surprised with their balance sheet. They just went IPO, and don't have the money to operate for a year properly !!! This.. from a well known management team and established underwriters..!! Just trying to understand how much money did CHEGG raise from their IPO (for the company's balance sheet).
Chegg will exceed and beat all analyst estimates this quarter by a wide margin!!!! The doubters will look back one day at how cheap these share were. Take a look around the world we live...facebook. airbnb, twitter, netflix, hulu, linkedin, and Chegg is here first regardless what amazon and apple do. They are not a textbook rental business just as netflix was never a dvd rental business. A means to an end and disruptive to the ecosystem of ancient publishers dictating content.
but to keep inventory of books, develop course help materials, tutors, infrastructure...takes money. What the heck they are going to do with barely any money in the bank. And they are cash flow negative. ...AMZN can sell books any day and AMZN can start giving a kindle free with year full of books..don't you think? [As far as I know right now, most of Chegg revenue comes from selling used books]