Down 90% From Its High, Is There Still Hope for Opendoor Stock?

Core Viewpoint - Opendoor Technologies, the leading iBuyer in the U.S., is positioned for a potential recovery as interest rates decline, despite experiencing a significant stock price drop of over 90% due to macroeconomic challenges [2][6]. Company Overview - Opendoor operates as an instant buyer, utilizing AI algorithms to make cash offers for homes, renovate them, and relist on its marketplace [4]. - The company has become the last major iBuyer standing after competitors like Zillow and Redfin exited the market due to rising interest rates and increased costs [5][6]. Financial Performance - In 2021, Opendoor's revenue reached $8 billion, growing to $15.6 billion in 2022, but fell to $6.9 billion in 2023, with a projected decline to $5.2 billion in 2024 [8]. - The adjusted EBITDA margin turned negative in 2022 and 2023, reflecting operational challenges, but is expected to improve in 2024 as the company stabilizes [8][10]. - The net loss increased from $662 million in 2021 to $1.4 billion in 2022, with a projected loss of $392 million in 2024 [8]. Market Outlook - Analysts predict that Opendoor's revenue will rise by 18% to $5.8 billion in 2026, with the adjusted EBITDA margin nearing break-even levels [13]. - The company is expected to benefit from further interest rate cuts by the Fed, partnerships with homebuilders and real estate platforms, and enhancements to its AI algorithms [11][12]. Stock Performance - Opendoor's stock has surged approximately 370% over the past month, driven by speculation and market interest, suggesting potential for further investment [14].