Will Busuu's 15% Growth Make Chegg a Language-Learning Leader?

Chegg, Inc. CHGG is currently focusing on two primary growth areas: language learning and workplace readiness and upskilling, with the Busuu and Skills businesses serving as the primary growth engines in the upcoming years.Busuu is the language learning business that recently underwent AI integration, offering it a distinct edge in the market. The AI-powered features like the Speaking Practice and Speaking Bites have boosted engagement, conversions and retention. In the second quarter of 2025, Chegg’s Busuu witnessed 15% year-over-year revenue growth, reflecting impressive contributions from the B2C (6% year-over-year revenue growth) and B2B (39% year-over-year revenue growth) segments.Through the second half of 2025, the B2C segments under CHGG’s Busuu business will focus on product innovation, especially emphasizing AI integration to drive personalization. Within the B2B segment, the emphasis will be on rolling out Guild into the English language learning vertical and expanding its offerings with Learning Pathways, which provide personalized courses focused on key language and professional skills for specific roles and industries. Owing to these in-house efforts and market demand trends for Busuu, Chegg remains optimistic about this business achieving $48 million in revenues in 2025 and reaching positive adjusted EBITDA in the first quarter of 2026.Busuu’s growth signals that Chegg is moving in the right direction. If current trends hold, with Chegg managing its turnaround while doubling down on AI and expansion, Busuu could indeed propel the company toward the forefront of language learning. However, to truly become a market leader, it must sustain Busuu’s momentum, outpace competitors and shore up its core business foundation.Chegg’s Market Competition PositionChegg operates in a highly competitive landscape that spans school programs, online education and digital learning services. Key market players like Duolingo, Inc. DUOL and Stride, Inc. LRN represent distinct yet overlapping challenges within the broader edtech ecosystem.Duolingo dominates the language-learning niche with its gamified app and AI-driven engagement. With a strong mobile presence and daily user engagement, Duolingo has built a brand synonymous with accessible, bite-sized learning. Meanwhile, Stride focuses primarily on K-12 online school programs, providing virtual classes, curriculum and supplemental tools that have grown in relevance with shifts toward digital-first learning.While Duolingo and Stride each carve out specialized markets, Chegg’s competitive advantage lies in its subscription-based ecosystem, which integrates study help, textbooks, skills and now AI-enabled support. This combination creates stickiness and convenience for students, making Chegg a one-stop platform for learning services in a fragmented edtech environment.CHGG Stock’s Price Performance & Valuation TrendShares of this California-based education technology company have surged 48.7% in the past month, outperforming the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 index.Image Source: Zacks Investment ResearchCHGG stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.48, as evidenced by the chart below. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.Image Source: Zacks Investment ResearchEarnings Estimate Trend of CHGG StockCHGG’s bottom-line estimates for 2025 indicate a loss per share, while those of 2026 indicate break-even earnings. Over the past 60 days, the estimates for 2025 have contracted to 11 cents per share, while those of 2026 have contracted to a breakeven point.Image Source: Zacks Investment ResearchAlthough the estimated figures for 2025 indicate a downtrend of 114.7% year over year, estimates for 2026 indicate 100% growth.Chegg stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stride, Inc. (LRN): Free Stock Analysis Report Chegg, Inc. (CHGG): Free Stock Analysis Report Duolingo, Inc. (DUOL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks