In their most recent earnings they posted a beat and still dumped because the beat wasn't good enough.
They are hundreds of billions in debt
They are also down almost 53% from their high in September 2025
They have been sued by investors
They have recently laid off employees
Now they allegedly cancelled the deal with OAI for building datacenters
Genuinely, what is the projection of this company. It doesn't feel like they have anything going for them. They're in a catch-22 with AI where if they invest in AI they increase their debt and uncertainty around making it profitable, but if they don't then they're not "innovating". Investors aren't happy, their investments seem to go no where, and whatever they're doing right now isn't enough.
All of this feels like the utmost bearish red flags I have seen and yet in this circus market, there is a nonzero chance it will still pump on earnings on the off chance they managed to do something right. But given their recent line of failures, I don't feel that they're on the path to do anything we haven't already heard. If anything, they might confirm the OpenAI news and the stock might get a beating, but who knows.
You guys think that this company is toast in the short term or is it due for a reversal? I get a feeling they were laying off employees to pump the numbers to counteract the bad news about OAI but you never really know.