Why Chegg and Pearson Just Popped, but Duolingo Dropped
On Tuesday, an earnings beat from educational software company (Nasdaq: CHGG) the previous evening somehow managed to spark a sell-off across the educational stocks sector, sending language learning company Duolingo (Nasdaq: DUOL) down 10%, costing Chegg rival Pearson (NYSE: PSO) nearly 15% of its market capitalization, and crashing Chegg itself for a 48.5% loss. Chegg warned investors of the impact ChatGPT was having on its business.
On Wednesday, however, it's (mostly) good news for these stocks. After Bank of America called the damage to Pearson stock in particular "overly harsh," that stock had gained 11% by 2 p.m. Wednesday, while Chegg was chugging 13% higher. So far, only Duolingo is being left in the lurch -- down 3%.
So what unnerved education stock investors yesterday, and how has this changed today?
Source Fool.com
