Opendoor(US:OPEN) The Motley Fool·2026-01-07 19:01Core Viewpoint - Opendoor's stock has rebounded significantly from its all-time low, indicating potential for future growth as the housing market recovers and the company diversifies its business model [2][12]. Company Overview - Opendoor is the largest instant buyer (iBuyer) of homes in the U.S., making cash offers, renovating properties, and relisting them on its marketplace [3]. - The company's capital-intensive model thrives in low-interest environments but struggles when rates are high and the housing market cools [3]. Recent Performance - Opendoor's stock reached a low of $0.51 per share in May but has since risen to nearly $7, turning a $1,000 investment at the low into over $13,000 in seven and a half months [2]. - The company experienced a revenue decline from $8 billion in 2021 to an expected $4.2 billion in 2025, with a significant drop in homes bought from 36,908 in 2021 to a projected 6,535 in 2025 [7]. Financial Metrics - Revenue growth has been volatile, with a peak of 211% in 2021, followed by a decline of 55% in 2023 and an expected further decline of 18% in 2025 [7]. - Adjusted EBITDA margins have turned negative, with a forecast of -1.9% for 2025 [7]. Management Changes and Strategic Moves - Recent management changes include the hiring of Kaz Nejatian as CEO and the return of co-founders to the board, which may lead to more aggressive expansion strategies [8][9]. - The company is enhancing its AI algorithms for property pricing and expanding its marketplace to connect sellers directly with buyers, reducing reliance on its iBuying model [9][10]. Future Outlook - Analysts predict revenue growth of 15% to $4.5 billion in 2026 and 41% to $6.8 billion in 2027 as interest rates decline and the housing market recovers [11]. - If Opendoor achieves its growth targets and trades at three times sales by 2035, its market cap could increase to $88 billion, representing a potential 13-fold increase [12].