This $5 Billion Company Is Trading Like a Penny Stock

You don't expect stocks with ample marketplace caps to person tiny terms tags, but Opendoor Technologies (NASDAQ: OPEN) is simply a jumbo shrimp contradiction successful today's marketplace waters. The home-flipping specializer has a marketplace headdress conscionable supra $5 billion, adjacent though it's presently trading for conscionable northbound of $5 per share.

Making things adjacent much interesting, Opendoor traded arsenic debased arsenic $0.51 successful precocious June. It was decidedly a penny banal astatine that point, but present it's a full-blown mid-cap stock. Its greater than tenfold leap successful conscionable a fistful of months is breathtaking, and decidedly worthy a person look.

Opendoor was calved successful an epoch of debased owe rates and rising residential existent property prices. It was the perfect clime for its concern model. Opendoor buys an undervalued location successful an ascending neighborhood, spruces it up, and attempts to merchantability it astatine a terms supra its makeover expenses and carrying costs.

This concern exemplary has struggled successful caller years. High involvement rates person wounded affordability portion besides keeping homeowners from listing their properties. Even the country's largest online existent property portal gave this concern a spell earlier pulling retired 4 years ago.

The banal illustration has been awesome since its summertime low, but the fundamentals haven't kept up -- for now. Opendoor's rally has stemmed from being thrust into the speculative spotlight arsenic a meme stock. The concern itself is inactive awaiting a genuine turnaround.

Revenue is declining for the 3rd consecutive year. Losses support mounting. The marketplace for secondhand homes remains characterized by a bladed proviso and arsenic tepid user demand. It won't ever beryllium that way. Mortgage rates person been inching little adjacent earlier the Fed began cutting rates successful September. Analysts spot Opendoor returning to gross maturation successful 2026 with losses narrowing. The stock's valuation whitethorn beryllium hard to warrant successful the existent climate, but the near-term outlook is much jumbo than shrimp for Opendoor.

Before you bargain banal successful Opendoor Technologies, see this:

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