Core Thesis - Opendoor Technologies has the potential to reach a share price of $9–10, doubling from its current price of $5, driven by revenue recovery and valuation reset [3][4][8] Revenue and Valuation - Opendoor recorded revenues of $6.9 billion in 2023 and $5.2 billion in 2024, with forecasts suggesting a recovery to $12–13 billion by 2026 [3] - The company is currently trading at 0.3x forward sales, significantly lower than competitors like Zillow, which trades at 3x [4] - If revenues recover to $12 billion and the price-to-sales (P/S) multiple increases to between 0.7 and 1.0x, the stock could trade around $9–10 [4][8] Key Growth Drivers - Housing market stabilization is expected as mortgage rates decrease and inventory remains constrained, leading to increased transaction activity [6] - Improving unit economics with gross margins rising from negative figures in 2022 to approximately 5–6% in 2024 due to better pricing algorithms [6] - Diversification into mortgage, title, and home services is increasing revenue per customer and reducing reliance on iBuying [6] - Partnerships with Zillow, Realtor.com, and homebuilders are enhancing deal flow and distribution [6] Path Toward Profitability - The company has shown positive adjusted EBITDA in recent quarters and is projected to significantly reduce net losses by 2025, which could attract institutional investors [7][9]

Signs that interest rates would soon come down helped fuel the home flipper's rally.After breaking out in July, Opendoor Technologies (OPEN 0.98%) soared again in August, climbing on the thesis that the business would turn around on new signs that the Fed would cut interest rates. Investors also reacted positively to news that CEO Carrie Wheeler would be stepping down, showing hopes that a new leader could help drive a turnaround.That general momentum was able to overcome a weak second-quarter earnings repo ...

The meme-stock rally at Opendoor Technologies has been very good for its former CEO. Carrie Wheeler, who resigned under pressure, filed paperwork to sell 7 million Opendoor shares worth roughly $35 million. https://t.co/7Fip3fLjvO ...

Core Viewpoint - Opendoor Technologies' stock has surged 500% in the last three months despite its struggling business model characterized by low gross margins and a history of losses, suggesting investors should consider more profitable alternatives like Airbnb and Lululemon [2][3]. Opendoor Technologies - The company has never generated a profit and has taken on significant debt to fuel growth, indicating a poorly structured business model that may hinder its iBuying operations [2]. Airbnb - Airbnb has established itself as a leading travel platform with a 13% revenue increase to $3.1 billion and a net income of $642 million, reflecting a 21% profit margin [7]. - The company is focusing on global expansion, particularly in Japan and Brazil, where nights booked grew approximately 15%-20%, outpacing overall bookings growth [6]. - Airbnb is reinvesting profits into new features and services, which may compress profit margins in the short term but are expected to enhance long-term growth [8][9]. - The forward price-to-earnings (P/E) ratio is currently 31, which may appear high, but steady revenue growth and profit margin expansion could lower this ratio significantly over the next five to ten years [9]. Lululemon Athletica - Lululemon remains profitable with a forward P/E ratio of 14, which is low due to a 60% decline from its all-time highs [10]. - Despite concerns about slowing growth in North America, the company reported a 4% year-over-year revenue increase in the region and a 20% increase in international revenue, particularly in China [11]. - Overall revenue grew 8% on a constant dollar basis, indicating market share growth in the casual apparel and athleisure sector [12]. - The company has been actively repurchasing stock, reducing shares outstanding by 8% over the past five years, which is expected to enhance earnings per share (EPS) and lower the P/E ratio [13].

Core Insights - Opendoor Technologies reported second-quarter 2025 revenues of $1.57 billion, a 3.7% year-over-year increase, and achieved its first positive adjusted EBITDA in three years at $23 million, reversing from a $5 million loss in the prior year [1][4] - The company anticipates a significant sequential revenue drop in the third quarter, projecting revenues between $800 million and $875 million, with an adjusted EBITDA loss forecasted between $21 million and $28 million [2][7] - Opendoor is transitioning to an agent-driven platform, which has shown promising early results, including 2x higher customer conversion to cash offers and 5x higher listing conversion rates compared to its previous model [3][4] Financial Performance - The contribution margin for Opendoor decreased to 4.4% from 6.3% year-over-year [1][7] - The stock price of Opendoor has surged 645.6% over the past three months, significantly outperforming the industry average growth of 8.9% [5] Valuation and Estimates - Opendoor's forward price-to-sales (P/S) multiple stands at 0.64X, well below the industry average of 5.68X [9] - The Zacks Consensus Estimate for Opendoor's 2025 loss per share has widened from 21 cents to 24 cents, indicating a decline in analyst sentiment [10] - Projections suggest a 35.1% rise in Opendoor's earnings for 2025, contrasting with expected declines for competitors Chegg and Exodus [13]

Individual traders and social-media influencers pushed to oust the CEO of Opendoor Technologies, and got what they wanted https://t.co/GN0Pvs0YNd ...

Core Viewpoint - Opendoor Technologies experienced a significant stock decline of 11.2% this week, despite a late recovery, primarily due to profit-taking by investors after a substantial rally earlier in the year [1][2][4]. Group 1: Stock Performance - Opendoor's stock fell 11.2% from the previous week's market close, marking a notable valuation slide [1]. - The company’s share price is still up 178% in 2025, indicating strong overall performance despite recent losses [2]. - The stock initially surged due to speculation about potential interest rate cuts by the Federal Reserve, which prompted investors to lock in profits [4]. Group 2: Investor Sentiment - Investors began cashing in on gains following a significant rally, which was influenced by Federal Reserve Chair Jerome Powell's comments on interest rates [4]. - The stock saw a rebound later in the week after being highlighted on CNBC's Mad Money, along with news of interim CEO Shrisha Radhakrishna purchasing 30,000 shares [5]. - Eric Jackson, founder and CEO of EMJ Capital, has been a vocal supporter of Opendoor, contributing to its stock gains this year [5][7]. Group 3: Leadership and Future Outlook - Opendoor is currently searching for a new CEO after the departure of former CEO Carrie Wheeler, influenced by retail investor pressure [6]. - The selection of the next CEO is expected to align with the priorities of retail investors, which may impact the company's future direction [7].

The meme stock continues to see major volatility.Shares of Opendoor Technologies (OPEN 4.33%) are moving higher on Friday, up 2.2% as of 1:56 p.m. ET, but were up as much as 15.5% earlier in the day. The jump comes as the S&P 500 has lost 0.7% and the Nasdaq Composite has lost 1.3%.Though most of the gain didn't stick, the meme stock flew upward following the appearance of EMJ Capital's Eric Jackson on Yahoo! Finance's show "Opening Bid."Eric Jackson once again sends Opendoor stock higherMr. Jackson is larg ...

Core Insights - Opendoor Technologies (OPEN) is transitioning from a single-product iBuyer to a distributed platform that allows agents to offer multiple selling paths to sellers, including cash offers, traditional listings, and a hybrid "Cash Plus" option [1][7] - The new platform approach is designed to benefit all parties involved: sellers gain flexibility, agents earn commissions, and Opendoor can monetize more leads while focusing on capital-light, high-margin revenue streams [2] - Despite facing macroeconomic challenges and seasonal pressures, management believes this platform will serve as a scalable model for long-term growth [3] Competitive Landscape - Offerpad Solutions Inc. (OPAD) is adopting a disciplined, inventory-focused model that prioritizes profitability over rapid expansion, reporting $285 million in revenues for Q2 2025, a 24% year-over-year decline, but maintaining contribution margins at 7.3% [4] - Zillow Group Inc. (Z) has shifted away from direct home acquisitions to enhance its Premier Agent marketplace, with Premier Agent revenues increasing by 12% year-over-year in Q2 2025, supported by AI-driven tools [5] Stock Performance and Valuation - Opendoor's stock has surged by 573.1% over the past three months, significantly outperforming the industry growth of 10.5% [6] - The company trades at a forward price-to-sales (P/S) multiple of 0.62X, well below the industry average of 5.65X [8] - The Zacks Consensus Estimate for Opendoor's 2025 earnings per share (EPS) indicates a year-over-year increase of 35.1%, while the 2026 EPS estimate shows a decline of 10.4% [9]

Wow.$OPEN leadership just listened to retail activism and is putting monetary skin in the game.Long-term alignment is the first step to building a monster business.Shrisha (@shrisha):We're all in on the long-term opportunity at $OPEN. Actions speak louder than words: I'm personally buying more stock, and all members of our executive team have canceled their 10b5-1 selling plans. ...