Is OpenDoor Yesterday's News?

Core Viewpoint - Opendoor Technologies experienced a significant stock price increase, rising from $0.51 to over $10 in less than three months, marking a gain of more than 2,000% [1] Group 1: Stock Performance and Investor Sentiment - The stock's rally was fueled by interest from meme stock investors on social media platforms, with comparisons made to Carvana, which saw a massive increase after a near bankruptcy [2] - Following the stock's rise, there was pressure from investors for the removal of CEO Carrie Wheeler, who was replaced by Kaz Nejatian in August, alongside a board overhaul that included the return of co-founders Keith Rabois and Eric Wu [3] Group 2: Strategic Changes and Business Model - New CEO Kaz Nejatian has initiated a strategic overhaul, expanding Opendoor's operations to all 50 states and focusing on scaling acquisitions, improving unit economics, and building operating leverage [5][6] - The company's business model relies on selling houses for more than their purchase price and collecting service fees, making it vulnerable to fluctuations in the housing market [6] Group 3: Financial Performance and Market Conditions - Despite a slight decrease in mortgage rates, the housing market remains weak, leading to uninspiring third-quarter results for Opendoor, with revenue declining and adjusted net loss narrowing from $70 million to $61 million [7] - The initial excitement around Opendoor as a meme stock appears to have diminished, with the stock down 40% from its peak in September [8]