Opendoor is not worth owning until interest rates start coming down. @Donald04284612 argues the new CEO has done a remarkable job and the stock could be a turnaround and a play on lower rates and a housing recovery. x.com
Jonah Lupton
CEO & CIO of FirstWave Capital, Long-Biased Growth
Opendoor will go nowhere until interest rates fall and home affordability improves. It has broken down from a Darvas box, while retail traders keep buying it because it is low-priced and was hyped toward $80 a share. x.com
Opendoor is a low-quality name because real estate is a personal, decentralized business that isn't meant to be centralized by a non-personal agent managed from San Francisco. Its web traffic is small next to Redfin's amid big competition, and it needs something revolutionary that isn't in sight. Real estate also shouldn't be touched in a weak consumer market. x.com x.com x.com
Opendoor has crashed enough and should fly once interest rates come down a lot. x.com
Opendoor is best avoided because it is too correlated with the mortgage market, which is doing horribly right now. x.com
Opendoor is housing's cash incinerator and a stock to avoid in April. It is still burning money while high rates and low inventory work against it, and the turnaround story looks more like a reason to run. x.com
Markets can front-run a rate turnaround, favoring an upward swing in Opendoor. Its transformation and a turn in rates are both bullish catalysts, while long-duration Treasuries look to be bottoming. Opendoor's stock is holding its support area. x.com
Opendoor, a meme real estate stock, is predictably struggling in a historically slow housing market with mortgage rates near 7.35%. Per @DudeWhoInvests, shares now trade around $2.50, far below the $7 insiders paid. x.com
Opendoor's record net loss undermines its investment case. Trailing net income has fallen to negative $1.521 billion, its worst level so far. x.com
Opendoor could make a nice short-term swing trade on retail hype if it breaks its downtrend, though its long-term fundamentals are unconvincing. Retail speculators may pour back in once it moves, and some may buy it by mistake around the OpenAI IPO, as happened with Virgin Galactic before SpaceX's IPO. Fundamentally, mortgage rates likely need a serious cut for the business to accelerate. x.com x.com x.com x.com
Opendoor's 10% fee makes its offer uncompetitive for sellers. One homeowner was quoted a $60,500 service fee on a $634,000 sale, roughly double what both agents would cost, which explains why the stock is around $4 despite hopes it becomes a trillion-dollar company. x.com