Core Thesis - RXO, Inc. is facing significant criticism regarding its business model, which is perceived as fundamentally unsustainable and reliant on misleading financial practices [2][4]. Financial Performance - As of December 1st, RXO's share price was $13.25, with trailing and forward P/E ratios reported at 715.33 and 111.11 respectively [1]. - The company's financial presentation is viewed as an illusion of strength, with core operations appearing weak compared to better-capitalized peers [3]. Accounting Practices - Analysts argue that RXO has employed questionable accounting methods that obscure the true state of its operations, leading to a misrepresentation of financial prospects [2][3]. - The report suggests that RXO's intrinsic value is significantly lower than its current market price, indicating a potential downside of 60–90% [4]. Market Position - RXO is not among the 30 most popular stocks among hedge funds, with only 31 hedge fund portfolios holding RXO at the end of the second quarter, an increase from 16 in the previous quarter [6]. - The company is compared unfavorably to competitors in the same industry, highlighting structural vulnerabilities that may become apparent as market conditions normalize [3][4].