The rapid rise of artificial intelligence appears to be taking a toll on the shares of online education companies Chegg and Coursera. Both stocks sank by more than 10% on Tuesday after issuing disappointing guidance in part because of students using AI tools such as ChatGPT from OpenAI. Chegg, which announced a new CEO, said it expects second-quarter revenue to come in between $159 million and $161 million, lower than the $174 million expected by analysts polled by LSEG.
