Chegg $CHGG is now down 99% from its peak because AI has killed its business entirely.
Chegg was a $14.7 billion edtech company that charged students $20 a month for homework answers from a database of 79 million solutions built over a decade. Then ChatGPT launched in November 2022. Five months later Chegg's CEO admitted it was destroying their business. The stock dropped 48% in a single day. Revenue dropped 49% by Q4 2025. Subscribers collapsed from 5 million to under 3 million. The company fired 67% of its staff in two rounds last year and shut down all US and Canada offices. AI does the same thing instantly for free and explains the concept behind it. It went From $14.7 billion marketcap to $114 million in 39 months. The first company to be officially killed by AI. Source: Bull Theory
SOX vs. Silver: mind the gap!
AI demand for silver is still small, likely only a low single-digit % of total demand. But it’s the fastest-growing piece, with AI servers using significantly more silver than traditional hardware. And importantly, cost isn’t a constraint. Silver is a tiny part of system spend, making AI a strong marginal buyer. As shown on the hashtag#chart below, the SOX vs silver gap is huge. Is chasing silver upside convexity instead of SOX at 60x P/E a more attractive bet? Source: TME
LPs are rotating.
Infrastructure and liquidity solutions (secondaries, opportunistic) are in. Software, buyouts and direct lending are out. Source: Illiquid Insights
The current bull market is 3.5 years old and up 99.2%. As we've noted many times, once bull markets get past their third birthday they rarely end anytime soon.
Source: Over the past past 50 years, 5 made it past their 3rd birthday and those lasted eight years on average".
The World soared to its highest level of uncertainty in history last year, surpassing Covid, the Global Financial Crisis, and the Dot Com Bubble 👻🤯👀
Source: Barchart
Hedge funds were caught offside by the US stock market rally:
The US hedge fund long/short ratio has fallen below 2.0, even lower than during the 2025 April sell-off. This is despite equities trading near record highs. This comes as last week saw the largest net sales by hedge funds year-to-date, driven by long sales concentrated in US Tech Hardware and short additions focused on US Software. By comparison, the ratio was as high as 2.5 in December last year. Furthermore, retail investors recorded their largest weekly outflows year-to-date, driven by semiconductors, according to UBS. Source: UBS, Global Markets Investor
Michael Burry just called the bottom on software stocks
He opened a new 3.5% position in PayPal $PYPL at $49.38 yesterday And is adding Salesforce $CRM and MSCI $MSCI this morning, per his Substack. His recent purchases: • PayPal $PYPL • Fiserv $FISV • Adobe $ADBE • Autodesk $ADSK • Veeva $VEEV Source: Michael Burry Stock Tracker
The Nasdaq-100 is up 12 days in a row - something it hasn't done since July 2017...and has only surpassed this length of win-streak, four times in its history...
Source: zerohedge
