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Opendoor Stock Is Up 325% in the Last Month. My Prediction for What Comes Next.
OpendoorOpendoor(US:OPEN) The Motley Foolยท2025-07-22 17:14

Group 1 - Opendoor Technologies' stock has surged 325% recently, primarily driven by online investor interest, despite no fundamental changes in its business model [1][2][5] - The company faced significant challenges, with its stock down 98% from all-time highs and a proposed reverse stock split to avoid delisting [3][4] - Opendoor's business model involves directly purchasing homes and reselling them, but it has struggled since the peak of home prices in 2022, reducing its home purchases from 50,000 to below 15,000 annually [4][5] Group 2 - The company is evolving its business model by collaborating with real estate agents to attract potential home sellers for all-cash offers, aiming to increase home purchases in a challenging housing market [7] - Opendoor's gross margin is only 8%, rarely exceeding 10%, indicating low profitability in its home-flipping operations [8] - The company relies heavily on debt financing to support its home purchases, leading to significant interest expenses and a history of never generating profit [9][12] Group 3 - Despite the recent stock rebound, the company's lack of profitability and flawed business model raise concerns for potential investors [11][12] - Opendoor's share price remains 94% below its all-time highs, suggesting a rational long-term trend rather than the recent surge [13] - Predictions indicate that the stock may return to a downward trajectory if the company continues to incur losses in the coming years [13]