For sure, there are risks and red flags to take note of. And the new share issues cannot be discounted easily. 

On one hand, the CEO says it was to finance a transformation into using AI to manage their inventory and flips. On the other hand, one has to worry if this is because they have run out of cash and need to stock up their balance sheet. 

Just which is the truth. 

Opendoor Gets Slammed as Loss Widens -- WSJ

Opendoor Technologies, which became a high-flying meme stock earlier this year, is down sharply Friday after reporting disappointing quarterly results.The company was the subject of an Oct. 3 Heard on the Street column that flagged a crucial problem for its business model: The economics of the home-flipping business don't scale. Buying and selling homes for resale is both labor- and capital-intensive. Opendoor and other home-flippers have struggled to figure out how to make revenue grow faster than costs.This problem was visible in Opendoor's quarterly results. Opendoor said it sold more than twice as many homes last quarter as it bought, in an effort to clear out old inventory. Revenue was $915 million, down 34% from a year earlier, while its net loss grew to 15% to $90 million.Opendoor said it's "driving to adjusted net income breakeven by the end of 2026." But the key word there is "adjusted," signaling that Opendoor won't be profitable using standard metrics.This item is part of a
Opendoor Gets Slammed as Loss Widens -- WSJ

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet