we have to - differentiate from the services that chegg and peirson provides, offersome that chegg andervices, where it is very bespoke for children with certain needs, it is a very wide parameter we are talking about here?— about here? this is one of the reasons we — about here? this is one of the reasons we have _ about here? this is one of the reasons we have seen - about here? this is one of the i reasons we have seen disparate impact, with companies with chegg, many of the services are easily replicable by chat gpt in its current phase while you have seen less impact for companies like peirson providing a broader set of experiences and learning educational tools. for these companies _ educational tools. for these companies they _ educational tools. for these companies they will - educational tools. for these companies they will have i educational tools. for these companies they will have to | companies they will have to consider this very carefully they will say innovate or die, chegg and peirson had to think through their business strategy now, surely? through their business stra

. >> i want to ask you about ai, the online education company chegg is plummeting. of the reasons is the ceo was saying chatgpt is actually been a threat and hurting the business for online education with students signing up there and looking for answers and homework help on ai. i know you've been experimenting with ai supermodels, which is a whole other thing to talk about. but how much are you trying to incorporate it into the business at this point? >> well, we've really been investing in ai and data science for the last several years we've had 170 years of data in this company we've been trying to leverage data science and ai to advance our business on -- and most of the use cases have been around pricing and promotion optimization and things like that we are now experimenting with generative ai, with models driven by data science, but there's no question that it's starting to have a positive impact on our business so, we are continuing to invest in it. we're actually training our own employees. we've trained over 100 employees in data science. we've kind of run

star starbucks, amd, ceaesars and ford plus chegg gets sliced in hatch. shares down nearly down 50% just today. how the a.i. boom is taking a big bite out of this company don't go anywhere. more "fast money" in two like a free 5g phone. get started today with verizon business. it's your business. it's your verizon. i was having relationship issues with my old bank. next to no interest, the fees... it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. get up to 4.20% apy, pay no account fees, and up to $2m in fdic insurance. download the sofi app and earn up to $250 when you set up direct deposit. sofi get your money right. young lady who was, mid 30s, couple of kids, recently went through a divorce. she had a lot of questions when she came in. i watched my mother go through being a single mom. at the end of the day, my mom raised three children, including myself. and so once the client knew that she was heard. we were able to

chegg is going to be introducing a new product.eta testing and then bringing it out they're in a difficult position given the school year is ending as well in terms of predicting how things are going to go so rosenzweig said it's too hard to tell. he believes he's the tip of the spear for a lot of other industries that are going to face different but similar kinds of disruptions as chat gpt in some way competes with whatever product they're offering. >> david, it's so important for people to recognize that in a conference call, dan is talking about this chegg-made product. that that's going to alleviate the issues it's only in beta. it's summer, nothing is going to go on. i come back and say, wait a second, what will happen if things are bad in march, what will happen in april what will happen in may? i see there's the possibility of the cadence getting worse and worse here as more and more kids realize, wait a second, i don't need to pay. i've got chat gpt, it doesn't cost me anything david, i don't know. a lot of people are sayin

they're happening in the stock market with ibm, chegg, many companies to follow. this is being negotiated, and there is no way to know. i'm using the stuff every day, and a lot of the answers from chat gpt and bart, they sound right, like maybe your son's friend who you threw under the bus, tyler, the essay that doesn't stand up to scrutiny i don't know you have to be really careful. i think that's the attack alphabet is taking. >> on the ibm front, they expect to pause hiring for roles as 7,800 jobs could be replaced by a.i. in the coming years this is probably, you know, the first very tangible example of a.i. coming to the white collar workplace. are you surprised at how quickly this has happened, and do you think that this off-the-hand, sort of off-the-cuff comment, he will walk back from it, or will more companies quickly follow suit >> he hasn't walked it back yet. in fact, his predecessor talked about this all the time. look, i think he's just saying the quiet part out loud. the ceo of ibm, he says that these kind of jobs, they're basically very easily copi

is up ending companies and how it does business chegg does business from subscription and says revenuein danger if students see a.i. is an alternative to paying and chatgpt is impacting customer growth since march of this year. shares down 44% in the pre-market >>> we are watching shares of mgm slipping in the pre-market on the back of strong first quarter results. contessa brewer is here with the breakdown of the stock and sector glad to have the maven of macau. >> i love it i'll have them put that on my banner a lot to like about the earnings report macau is just busting through expectations mgm reporting first quarter revenue nearly 50% higher than estimate the all important adjusted property ebita more than double estimate. it is 12% off the levels pre-pandemic on the call, the ceo pointed out that mgm made a jump in market share in macao and he said he expects to keep that share because when the macao government awarded the concession renewal, it allowed mgm a third more gaming tables the company says it is also seeing a boost from the investment in attracting foreign tourists fro

that seems to be the case for chegg which is down by 50%. the chabad tool is threatening its homework services. they noticed a spike in student interest in check gpt -- chat gpt since march. what does ai and education look like going forward? how do they harness each other? let's look into generative ai. teach ai is a look at an initiative to helping educators teach with ai about ai. how much is ai teaching kids the teachers? >> i don't know about teaching kids instead of teachers, but what every school and teacher and student recognizes is that since check gpt -- chat gpt came out, they are asking, can basis for my homework? when i showed this to my kid, he asked if i'm allowed to this for school but that he asked what is the point of school if you can do all this. these are questions nobody has from answers to and the technology creators announcing how schools should be using it and school leaders are receiving the technology coming out wondering how we react when it is moving so fast. the goal of teach ai is to bring together leaders who

. >>> coming up, floalut after chegg's worst session. hear what the ceo had to say about the stock drop let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - yeehaw! - do you have a question? - are you a certified financial planner™? - yes. i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®. find your cfp® professional at letsmakeaplan.org. (vo) verizon small business days are back. april 27th through may 3rd. get a free tech check and special offers. like a free 5g phone. get started today with verizon business. it's your business. it's your verizon. >>> all right. welcome back to w.e.x. we begin with shares of amd dropping after beating expectations in the first quarter but issuing guidance for the current period is below analysts' senti

chegg makes money from subscriptions. they see revenue in danger if students see a.i. as an al alternative of paying. >>> and meantime, ibm expecting to pause hiring in roles it could replace with a.i the company will suspend or slow hiring in back office functions. he estimated 7,800 jobs could be lost they would not replace the roles vacated by attrition that will happen fast. the next 12 months if you played with it enough, you would know that we are probably three or four months away from being materially better and this was 18 months. clearly there are roles that don't need to exist. >> it is clear you can have it write an essay can you have it do engineering stuff or is that more complicated? >> you can ask math problems. >> a calculator. >> you could give it word problems it will give you the answer. >> can it write an episode of "the diplomat" show? this is their last chance. >> one big issue >> they should be careful. >> that's part of the whole strike which is to say in a writers room for a tv show that might hi

chegg is down 50%, and those are weighing on other educational players like duolynningo, and others back >> look part lookin looking forward to hearing from daniel les lessless leer-- leslie picker i here >> steep drops in banking today once again as the market digests the fallout of first republic failure and the sale to jpmorgan the kre regional bank etf down more than 6% western alliance, and key corp leading its level of uninsured deposits, and did thesis stems from the fact the bondholders and stockholders were wiped out in yesterday's seize to jpmorgan, and they're re-evaluating the decision that they see the same fate the power of the big bank balance sheet preferred by the fdic in this case to acquire the famed bank out of receivership in a world of potential industry consolidation. this calls into question regional's ability to compete, scott. >> leslie, thank you we'll follow it. some stunning losses again today. for more now, let's bring in david. he covers the regionals. i'm really glad to have you today because you're in the heart of this proverbial storm in terms of your co

dollars was wiped off the stock market value of the digital learning company pearson after us rival cheggificial intelligence chatbot chatgpt is hurting its business. —— almost $1 billion. dr kate devlin, is a researcher in artificial intelligence and society at king's college london. i asked her if regulation may stifle competition and innovation. it is difficult to say. interesting there is a move by the white house to have a closer look because until now the us has been quite hands off in terms of regulation so i think this could be frightening a few people when you consider the implications of some of the changes. i suppose that is the dilemma, is it exciting and new or something we should be concerned about and trying to regulate? if we try to regulate edge, does it stifle competition and innovation? the edge, does it stifle competition and innovation? ,, ., , , , innovation? the us has been very content to — innovation? the us has been very content to pretty _ innovation? the us has been very content to pretty much _ innovation? the us has been very content to pretty much self- inno

. >>> the ceo of chegg reacting to the plunge in the company's stock price yesterday.he stock was down by 50%. in an interview with jon fortt, dan rosenswieg talked about it. >> i don't talk about the stock price much it's quite a move. people need to understand is students can't be wrong when they do homework or learn things chatgpt is often wrong, and it's not going to be right any time soon. >> chegg plans to offer its own platform this month. it will be trained on chegg's trove of academic day data, but the question about it and the reason so many people are wondering, are there other stocks that can get chopped in half by the rise of ai students stopped paying. it's a subscription service. if you g with your homework, it's free. >> it plagiarizes it for you that's the problem. >> i have seen some stuff and you can tell once you start reading, you can tell what's been written by ai. >> i think it's true o chat gtp 3 and 3.5. i think once you get to 4.0 -- >> speaking of someone who rec received a report from one of the kids, i said, wait a minute, you used chhatgpt

chegg is dancing microsoft is trying to run we'll see.getting started. >> absolutely. >> stay story about getting pulled as the cricket bowler, pretty good college essay. jon fortt, thanks. >>> to seema mody for a cnbc news update. >> here is a news update at this hour we'll start in florida republicans have increased a budget for the office of election crimes and security the office championed by governor ron desantis was created as part of the state's ongoing election integrity efforts. democrats have criticized the office, most notably in august when it arrested 20 people on charges of being ineligible to vote after they cast ballots in the 2020 election. >>> the food and drug administration will review the first ever request to make a birth control pill available without a prescription next week if the request is approved, the medication will become the first contraceptive pill to be moved on to store shelves. the fda raised several concerns in an initial review to date. >>> and king charles met with commonwealth leaders at the headqu

dollars was wiped off the stock market value of the digital learning company pearson after us rival cheggs hurting its business. dr kate devlin is a researcher in artificial intelligence and society at king's college london. i asked her if regulation may stifle competition and innovation. it is difficult to say. interesting there is a move by the white house to have a closer look because until now the us has been quite hands off in terms of regulation, so i think this could be frightening a few people when you consider the implications of some of the changes. i suppose that is the dilemma, is it exciting and new or something we should be concerned about and trying to regulate? if we try to regulate it, does it stifle competition and innovation? the us has been very content to pretty much self regulate until now. there is no global approach to regulating ai, in the uk they proposed very much a sector regulation where regulators would keep an eye on things, there is the proposed eu ai act which will be one of the very first thing is to attempt to put this into law so there is growing tensio

caroline: when you look at your previous successes, chegg, alibabi, and one person is worried about chinan the ones going here. how do you think about these should -- these two ecosystems of offing -- ecosystems evolving? george: there is tremendous advantages for u.s. companies. when you think about what comes out of ai or a generative model, it is the ability to feel reinforcement learning and the feedback loop, whether it these -- be machines or humans are working together, it improves models over time. when you look at talk terrien -- will terrien regimes -- talk terrien -- talk terrien is --to ltarian regimes, -- ed: george mathew, managing director at insight partners. thank you for your time. vice valley -- filing for banking protection and selling itself to credit detailers. this is coming up next. this is bloomberg. ♪ saur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com - i just got the new job! - oh my god, i'm so excited for you! with a partner tha

we're going to get results from mgm, chegg and many more >> plus, we're going to talk to the ceo of e

just very short-term, something like that within beneficiaries, but i don't want you want to be long chegg and short nvidia because it's cheap i think the valuation thing is what pms are really trying to figure out, and the more macro, you're right ai is a beneficiary, but growth will be lower because of the bank stuff, and fed will be hawkish, and so, you know, i think, you know, you probably have to think through, you know, bond yields have backed up the premium isn't as compelling. i don't know if the next 10% moves up or down, and i don't know more than i knew at the beginning of the year. >> we can build on this, rethinking how you think about valuation in general, and what you -- what you thought might be a little too rich or ridiculously absurd, maybe it turns out is not >> i think that investors that anchor on pes are always going to miss it because when you look back to decades of data, scott, one-year forward returns and market have zero correlation that's for people anchoring of buying cheap stocks, you need a catalyst, and right now the catalyst is in growth, and growth is in a

chegg down last i saw 40% related to ai. nonetheless, they are concern points that sort of weigh -- they fit on the umbrella of concerns today >> so we thought 24 hours ago first republic would be idiosyncratic, that you would have relative calm playing off what jamie dimon's comments were over the weekend and, in fact, that proves not to be true today. zion down 11%. comerica down 11%. you see the stress returning once again in regional banks the vix approaching 19, up 18% the sector down most today is the most loved sector in the equity market. that's energy. everyone universally loves energy energy is down 4.7%. unfortunately for me i view this day as a significant one i view this day as what i call a change in trend. i've expected that the calendar q3 is going to be the most difficult one from a performance standpoint for the market. i think we are in the most intense in q2 period where you'll see economic and earnings contraction and on a day like today you could not ignore all of the negative dynamics that are going on

and take a look at shares here of chegg, it's worst day since november of '21.they're not unfamiliar with volatility, but they blamed chatgbt and ai for slowing customer growth. the ceo will be on "closing bell" at 4:00 p.m. eastern n'day. dot miss it. a ballet studio, an architecture firm... and homemade barbeque sauce. they're called 'small businesses.' but to the people who build them there's nothing 'small' about them. that's why at t-mobile for business... you'll save more than $1,000 versus verizon. and with price lock guarantee, we'll never raise your rate plan. so you can keep your focus on toe-turns and making sure the sauce is extra spicy. at t-mobile, there are no small businesses. ♪♪ ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decisio

we saw what happened to chegg last week when they said they're worried about ai and then coming backy on our air saying, look, we're creating our own ai tools, it will be fine. it's really just hard to judge, and people are still trying to figure it out. >> good piece with pichai arguing maybe more lawyers even with ai in the future because you're going to need legal strategies we'll see. >> i forget who said it. the workers will be displaced by ai are those not working with ai >> exactly steve thanks steve kovach new leadership at twitter. more details after the break >>> "the buzz" this morning has been all about twitter's new ceo. julia boorstin has new confirmation on it julia? >> reporter: elon musk making it official he's tweeting out i'm excited to welcome linda yaccarino saying she will focus on business operations while i focus on product design and new technology musk going on looking forward to working with linda to transform this platform into x, the everything app nbc universal announced linda yaccarino as ads chief will be stepping down and just yesterday musk announced

chegg is on the screen, that is down 50% today because of the impact of ai on their business.o clarify, i would not recommend buying check here and to say in the earnings they came out with good earnings and ceo announced their business was getting hit hard by ai and i think i just brought this to point out, stuart, artificial intelligence has a lot of great uses and it will be a big part of technology growth going forward, but it's going to leave some people lying in its wake and check could be one of those. stuart: you got it right. jp morgan, you own it, do you like it? i own it and love it and like what jamie dimon is doing. look at what was going on and we touched briefly, for $10 billion, he bought a lot of assets from first republic and able to buy wealth management clients that are clients that will be paying that bank money for a very long time so it's case of the rich getting richer. i'm not advocating for the regional banks to go under but rather than being a hit to fdic and government, let the big banks that can afford them like jp morgan take them in house and it'

chegg, that is proof, golly rapid changes are going there.ame thing happened with ibm they will stop looking for 7800 jobs. they had postings, you know what? a.i. can do these. this is a lot of jobs n a way i guess that is a positive game-changer with respect to the income statement. >> well we're going to see more of that, we know that we're already seeing it in the robotics field. there are a lots positions manuel labor jobs, advanced mechanical positions. workers are being replaced by robots. with the advent of a.i., the expansion of a.i., those robots will become more important and more ubiquitous, probably good for profit margins, good for a lot of corporate america, bad for the rest of the folks who need jobs. probably bad for the economy t may help with inflation down the road but there are going to be so many people unemployed, the jobs will evaporate. i'm worried about that. charles: you really, really have to be worried about it. one thing you kept telling us, you've been spot on about this, resistance levels for the s&p, for the na

chegg issues a disappointing outlook. shares down more than 30%.tal company avis posting a massive earnings beat, but shares are flat. >>> check out eli lilly breaking out to a feresh all-time high joining us now for more on the stock's big run and what could draw the results even further. a buy rating and a $440 price target on lilly. can you help us understand what part of your evaluation is mounjaro and what part is the promise of alzheimer's >> thank you for having me my model mostly is driven by mounjaro, and that's a small part of the business i would say it's probably contributing 10% to 15%, not more than that, it's pretty much driven by mounjaro at this point. >> so, basically, later on this year, when eli lilly is expected to give a readout of the alzheimer's results, if that's positive, that could be just upside that's not factored in at this point >> right i would agree with that. i think at least 10% upside when eli lilly shows alzheimer's data in first half of the year. >> okay. can you help us understand how mounjaro stacks up right

people talk about ai in relation to the big tech names, but -- and a bunch of smaller tech names like chegg for instance have blown up in the last couple of weeks because of ai's effects, but there are going to be some smaller companies that are ai winners. i think uber could very well be one of those in terms of how they're investing in it, in terms of optimization, in terms of the fleet, you know, management that's out there getting cars in the right spots to pick up, you know, deliveries and so forth i think there is a lot of upside still. i just think that just in the last couple of weeks, this is a stock that's moved up from, you know, i think it was in the high 20s to, you know, now we're in the high 30s >> no. it's up 55% year to date, but when talk about selling out of things like uber which you still like because they've gone up a lot, my first reaction is, man, do you think that you should do that broadly in big tech as a lot of those stocks have had, you know, maybe not 55% gains year to date, but some of them, i don't know, they're like a double meta's almost doubled since its n

to us quite as much as we thought in terms of us helping them with studying and learning, which is chegg'ssome portion of them did. you have any number of investors looking for other opportunities on the short side to see what chatgpt might disrupt. companies that rely on teaching people languages, how far away is chatgpt from being able to do that with you? for example. >> there are schools already which are coming up with anti-chatgpt -- do you know that i was, when i was at harvard, i got paid to see if there was any plagiarism i was a plagiarism officer >> schools are trying to deal with that. >> same thing is going to happen i don't know if you saw lena khan's editorial >> i did >> i actually -- she talked about collusion among the big companies. she talked about the idea that we are in a moment where the bad guys could take control. >> what has been interesting and perhaps distinctive about this period is how many of the b leaders in the a.i. have said, we need guardrails please help us save ourselves. yet it's unclear what we're going to get from the government or whether it is goin

these are companies like chegg , pearson companies like chegg, pearson aha— companies like chegg, pearson we can only learn in a linear way,— we can only learn in a linear vay, hhey— we can only learn in a linear way, they could— we can only learn in a linear way, they could become more hhehhhgehh— way, they could become more intelligent than _ way, they could become more intelligent than us. there are concerns they're _ intelligent than us. there are concerns they're already more hhehhhgehh— concerns they're already more intelligent than— concerns they're already more intelligent than us and you can tueh— intelligent than us and you can tueh hhaghe— intelligent than us and you can just imagine the— intelligent than us and you can just imagine the unintended consequences— just imagine the unintended consequences of that . yeah, consequences of that. yeah, aheohuhehy— consequences of that. yeah, aheohuhehy. — consequences of that. yeah, absolutely . i— consequences of that. yeah, absolutely . f: w 0 pq”r:r: absolutely. i couldn't agree more. emily every day there's a story about al that se

billion was wiped off the stock market value of the digital learning company pearson after us rival cheggis dr kate devlin, who's a researcher in artificial intelligence and society at king's college london. thanks for being with us. we talked a lot about al yesterday on the programme after the warnings of that departing google boss. and our business saying actually there is a huge potential here for growth but also we should be very wary of the impact it could have on our core business, who is right? it’s business, who is right? it's difficult to _ business, who is right? it's difficult to say. _ business, who is right? it�*s difficult to say. interesting that the risk this move by the white house to have a closer look because up house to have a closer look because up until now the us has been quite hands off in terms of regulation. i think this could be frightening for people when you consider the implications of some of the changes that have been happening. find i that have been happening. and i su ose that have been happening. and i suppose that's — that have been happening. and i supp