Opendoor Technologies Inc. (OPEN) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this company have returned -4.8% over the past month versus the Zacks S&P 500 composite's +5.2% change. The Zacks Technology Services industry, to which Opendoor Technologies Inc. belongs, has gained 17.2% over this period. Now the key question is: Where could the stock be headed in the near ter ...

Financial Data and Key Metrics - Revenue for Q4 2023 was $870 million, exceeding the high-end of the guidance range [11] - Full-year 2023 revenue reached $6.9 billion, with a contribution margin of 8.3% for the new book of inventory [4][25] - Q4 contribution margin was 3.4%, ahead of the high-end of the implied guidance range [12] - Adjusted EBITDA loss for Q4 was $69 million, with a full-year adjusted EBITDA loss of $627 million [41] - Adjusted operating expenses for Q4 were $99 million, down from $144 million in Q4 2022 [41] Business Line Data and Key Metrics - Home acquisitions in Q4 increased by 17% sequentially to 3,683 homes, surpassing prior expectations [12] - Partnership channel acquisitions grew by 35% in Q4 compared to Q3 and over 140% since Q1 [7] - The company reduced marketing spend by over 60% in 2023 but maintained aided awareness [6] Market Data and Key Metrics - The company tripled its market share from Q1 to Q4 2023 [4] - Home sales in 2023 were at the lowest level since 1995, reflecting a challenging macro environment [4] - The company exited three small markets, representing less than 1% of total volumes, due to cost structure inefficiencies [46] Company Strategy and Industry Competition - The company is focused on rescaling the business sustainably, with a target contribution margin range of 5% to 7% for 2024 [14][50] - Opendoor plans to increase total marketing spend in 2024 to attract more sellers, leveraging creative advertising and partnerships [6][7] - The company aims to achieve positive adjusted net income by balancing growth and profitability within its risk management frameworks [9] Management Commentary on Operating Environment and Future Outlook - Management highlighted ongoing macro uncertainty, including volatile mortgage rates, but expressed confidence in the company's ability to reduce losses and scale acquisition volumes in 2024 [9][14] - The company expects Q1 2024 revenue to be between $1.05 billion and $1.1 billion, with a contribution margin of 3.8% to 4.5% [27] - Management anticipates sequential acquisition volume growth in Q2 2024, driven by seasonality and increased contract volumes [8][53] Other Important Information - The company ended 2023 with $1.3 billion in total capital, including $1.1 billion in unrestricted cash and marketable securities [13] - Opendoor has $8.1 billion in non-recourse asset-backed borrowing capacity, with $2.8 billion in committed borrowing capacity [13] - The company celebrated its 10-year anniversary, having served over 250,000 customers across 50 markets [21] Q&A Session Summary Question: What needs to happen for Opendoor to reach positive adjusted net income? - Management emphasized the importance of sustainable growth, balancing acquisition volume with contribution margin targets, and leveraging potential macro tailwinds in the second half of 2024 [29] Question: How does the company plan to manage contribution margins in 2024? - The company has set spreads at a level to achieve a 5% to 7% contribution margin, balancing growth, margin, and risk [50] Question: What is the outlook for home acquisitions in 2024? - Management expects a meaningful increase in acquisitions, with Q1 2024 acquisitions up 100% year-over-year and sequential growth into Q2 [53] Question: How does the company view rate volatility and its impact on the market? - Rate volatility affects the balance of supply and demand, with the company focusing on maintaining price stability and managing risk [59] Question: What is the impact of increased marketing spend on acquisitions? - Marketing spend is expected to drive acquisition growth, with a 50% increase in advertising expense in Q1 2024, leading to higher contract volumes and closes in Q2 [89][91]

Opendoor Technologies Inc. (OPEN) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.11, delivering a surprise of 35.29%.Over the last four quarters, the company h ...

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________. Commission file number 001-39253 Opendoor Technologies Inc. (Exact name of registrant as specified in its charter) D ...

The residential real estate market tightened up in 2022 and 2023. Many homeowners -- sitting on low-interest-rate mortgages -- decided against selling their homes after the Federal Reserve went through its quickest rate-hiking cycle in history in its effort to bring soaring inflation back down. The combination of lower inventory, higher mortgage rates, and persistently high asking prices froze real estate activity in the United States, and the market will likely take many years to thaw out.Almost every comp ...

Opendoor Technologies Inc. (OPEN) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this company have returned -18.7% over the past month versus the Zacks S&P 500 composite's +5.3% change. The Zacks Technology Services industry, to which Opendoor Technologies Inc. belongs, has gained 4.4% over this period. Now the key question is: Where could the stock be headed in the near ter ...

Shares of Opendoor Technologies (OPEN -8.29%) were falling today after strong economic data tamped down expectations that the Federal Reserve would cut interest rates soon.Opendoor's decline today was in line with rising Treasury yields and mortgage rates, following the Fed's rate decision and commentary last week, and a strong employment report on Friday.As of 3:04 p.m. ET, the stock was down 8.5%. Opendoor's decline continuesFew stocks have as much sensitivity to interest rates as Opendoor, which makes mo ...

Shares of digital real estate stock Opendoor Technologies (OPEN -0.85%) dropped 23% in January according to data provided by S&P Global Market Intelligence. There wasn't any significant news, but there was plenty of pessimism about the real estate industry.A better way to buy and sell homesOpendoor operates an iBuying platform connecting buyers and sellers. It makes quick offers on homes without the need for staging and open houses, which benefits sellers, and it makes the necessary home improvements to hav ...

Opendoor Technologies Inc. (OPEN) closed the most recent trading day at $3.50, moving -0.85% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.07%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 1.74%.The company's stock has dropped by 12.19% in the past month, falling short of the Business Services sector's gain of 3.12% and the S&P 500's gain of 2.93%.Investors will be eagerly watching for the performance of Opendoor Technologies ...

Real estate stocks have gotten crushed over the last couple of years as soaring mortgage rates have squeezed demand. At the same time, homeowners who capitalized on rock-bottom mortgage rates during the earlier days of the pandemic are reluctant to sell and give up their low mortgage rates.As a result, existing home sales slipped to their lowest level last year, falling 19% to 4.09 million. That's even lower than they were during the trough in the housing market crash during the global financial crisis of 2 ...