Is Opendoor's AI-Driven Cash Offer Model Still Competitive?

Core Insights - Opendoor Technologies Inc.'s AI-driven cash offer model is central to its business operations, with one in four acquisitions coming from agent-led cash offers [1][8] - The company is diversifying its product offerings to enhance competitiveness amid housing market volatility and high mortgage rates [2] - The agent-led model has shown significant success, achieving five times higher listing conversion rates during pilot programs [3][8] - While the AI cash offer model's full potential won't be realized until 2026, it is expected to improve revenue visibility and profitability in the long term [4] Stock Performance - Opendoor's stock has increased by 391.6% over the past three months, outperforming the Zacks Internet - Software industry, the Zacks Computer and Technology sector, and the S&P 500 index [5][8] - Compared to competitors Zillow Group, Inc. and Compass, Inc., which gained 21.8% and 43.9% respectively, Opendoor has significantly outperformed [6][8] Valuation Metrics - Opendoor's stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.55, indicating a discount compared to industry peers [9] - Zillow and Compass are trading at higher valuations, with forward 12-month P/S ratios of 6.94 and 0.61 respectively [11] Earnings Estimates - Opendoor's loss per share estimates for 2025 have widened to 24 cents from 21 cents over the past 30 days, indicating a year-over-year growth of 35.1% despite the loss [12]