Is Opendoor a good stock to buy now?
Apr 06, 2021 · Opendoor published its quarterly results on March 4, with sales topping expectations but earnings falling far short of Wall Street's target. The company's sales fell 80% year over year to land at ...
Was Opendoor a disruptive idea?
Jun 04, 2021 · What happened. Shares of Opendoor Technologies ( OPEN 5.22% ) sank 22.7% in May, according to data from S&P Global Market Intelligence. The online real estate stock moved lower after the company ...
What is Opendoor and how does it work?
Nov 23, 2021 · November 23, 2021. Today, online real estate platform Opendoor (NASDAQ: OPEN) has been under some serious pressure. Currently, shares of OPEN stock have declined more than 10%, as investors ...
Will Opendoor's revenues recover in 2020?
May 12, 2021 · Shares of Opendoor Technologies (NASDAQ: OPEN) have plunged today, down by 11% as of 12:15 p.m. EDT, after the company reported first-quarter earnings. Opendoor went public last year by merging ...
Is Opendoor stock a good buy?
Is Opendoor stock undervalued?
Is Opendoor losing money?
Will Opendoor accept lower offers?
What happened
Shares of Opendoor Technologies ( NASDAQ:OPEN) sank 22.7% in May, according to data from S&P Global Market Intelligence. The online real estate stock moved lower after the company published its first-quarter earnings results.
So what
First-quarter revenue was down roughly 40.5% versus the prior-year period, but it also tripled compared to revenue in the fourth quarter. The year-over-year decline stemmed from the company pulling back on property purchases amid uncertainty created by the pandemic.
Now what
Opendoor Technologies stock has regained some ground early in June's trading, with the share price up roughly 7% in the month so far.
How does Opendoor work?
Opendoor makes cash offers to sellers and guides them through the closing process via its website and/or smartphone app. This eliminates the need for a real estate agent and their usual 6 percent commission (Opendoor charges a 5 percent fee), and more importantly, simplifies the process of selling a house. The global real estate market size is expected to be worth $4.3 trillion by 2025.
What is Opendoor home?
Opendoor is an “i-buying” company that enables homeowners to buy and sell homes online through its digital platform.
What is the NTM multiple for Opendoor?
Opendoor trades at an NTM EV-to-sales multiple of 1.1x, which looks attractively priced compared to other real estate stocks. Redfin and Zillow Group are trading at NTM EV-to-sales multiples of 2.8x and 2.6x, respectively.
Why is OpenDoor in jeopardy?
In such an environment, a company like OpenDoor could be in jeopardy because it has to hold onto a large inventory of homes. That could prove very costly and put lots of pressure on the company’s bottom line. Further, the competitive environment has been getting more intense for OpenDoor.
Who are the founders of OpenDoor?
OpenDoor got its start back in early 2014. Its cofounders included tech veterans like Eric Wu, Keith Rabois and Ian Wong. Rabois was a former executive at PayPal (NASDAQ: PYPL) and Square (NYSE: SQ ), whileDWu sold a company to Trulia and Wong had worked as a machine learning pro at Square.
What is the biggest attraction of OpenDoor?
Perhaps the biggest attraction of OpenDoor stock is the company’s massive market opportunity . According to the company, the residential real estate category is the largest “ undisrupted market in the U.S. ” valued at a whopping $1.6 trillion.
Is OpenDoor a publicly traded company?
The company went public via a SPAC (Special Purpose Acquisition Company). In other words, OpenDoor merged with a publicly traded shell firm. This process was faster than a typical IPO but also enabled the company to obtain capital.
Is OpenDoor Technologies a public company?
OpenDoor Technologies ( NASDAQ: OPEN ), which operates an online real estate platform, has gotten off to a nice start as a public company. Since late December, the shares have gone from $10 to a high of $32. In late afternoon trading today, the shares are hovering around $28.20. During the past week or so, many investors have sold the stock.
Does OpenDoor buy homes?
The app even gives homeowners the ability to sell their homes within a few days without buying a listing. In those cases, OpenDoor itself buys the homes with cash. Because of the streamlined process, the sellers’ overall costs are slightly cheaper in the latter scenario.
Why is Opendoor stock down?
The decline in Opendoor stock can be attributed to lackluster earnings. In the fourth quarter of 2020, the revenue fell 80 percent YoY to $248.9 million. That still exceeded the consensus estimate by more than $5 million. However, the EPS of -$0.49 missed the consensus estimate at -$0.10. The company’s full-year revenue also fell from $4.8 billion in 2019 to $2.6 billion. The report revealed Opendoor’s slowing growth in 2020 amid the COVID-19 pandemic. As a result, investors soured on OPEN stock.
What is Opendoor's market cap?
The company went public in December 2020 through a Chamath Palihapitiya-led SPAC in a deal that valued it at $4.8 billion. Now, the company has a market cap of $12 billion.
How many markets will Opendoor have in 2021?
The company plans to double its footprint to 42 markets in 2021, which should allow it to grow sales quickly. In addition to geographic expansion, Opendoor sales and profitability should improve as it introduces ancillary services like renovation and moving services. Also, improving financials will provide a tailwind for the stock.
Is Opendoor a good stock to buy?
OPEN is a good stock to buy now. There's plenty to like in Opendoor stock right now. First, bargain hunters have an opportunity to buy the dip in an online real estate technology stock with bright prospects. Opendoor’s $2.6 billion revenue in 2020 shows that it has captured less than 0.5 percent of the addressable market, ...
When did Opendoor publish its first quarter results?
Opendoor published first-quarter results on May 11, and the company saw its share price fall despite posting better-than-expected sales in the period. Sales were $747 million, while the average analyst target guided for revenue of $620 million.
Is Opendoor a real estate company?
Opendoor isn't the only player in the online real estate business, but it has a strong position in the market and has been showing strong business momentum despite headwinds related to the pandemic.
