Is Opendoor Technologies on a Path to Profitability?

Core Viewpoint - Opendoor Technologies is attempting to improve its financial health and margins through the use of artificial intelligence, despite recent earnings showing no significant progress [1][2]. Financial Performance - For the third quarter ended September 30, Opendoor's revenue declined by 34% year over year [3]. - The company's gross profit was only $66 million, resulting in a gross margin of 7.2%, a decrease from 7.6% in the prior year [3]. - The adjusted net loss for the past quarter was $61 million, compared to a true accounting loss of $90 million [5]. Profitability Outlook - Management claims that by the end of next year, the company will be on track to breakeven based on adjusted net income, which may not reflect true accounting earnings [4]. - The gross margin worsened in the last quarter, raising concerns about the company's ability to achieve breakeven [6]. Market Position - Opendoor's market capitalization is currently $6 billion, with a stock price of $8.13, having experienced a price range of $0.51 to $10.87 over the past year [7]. - Despite a stock price increase of over 400% this year, this surge is attributed more to hype around AI initiatives rather than improving fundamentals [8].