This Innovative Stock's Moat Is Getting Even Wider
Chegg (NYSE: CHGG) reported operating results on Aug. 4 that revealed a widening of its competitive advantage. The education technology company runs a subscription business for college students who pay to access its proprietary content.
That valuable material is what attracts customers. Chegg added millions of pieces of new material in its most recent quarter, making it harder for competitors to encroach on its business.
Interestingly, as of June 30 (the end of its second quarter), Chegg boasted 84 million pieces of this proprietary content. That figure was five million higher than the 79 million it had at the end of the previous quarter. These are primarily step-by-step solutions to problems students must learn to solve to pass their courses. As part of a monthly subscription, students get to ask 20 questions per month that Chegg's subject-matter experts answer. The question and answer become available for all students to view. It has taken Chegg years to build its database with this meticulous approach.
Source Fool.com
