Is Opendoor's AI-Driven Cash Offer Model Still Competitive?
OPEN Stock's Price Performance vs. Other Market Players
Shares of this California-based company offering a digital platform for residential real estate transactions have soared 391.6% in the past three months, significantly outperforming the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 index.
Image Source: Zacks Investment Research
Opendoor operates in the iBuying and digital real estate transaction space, which offers it substantial competition from key market players, including Zillow Group, Inc. ZG and Compass, Inc. COMP. In the past three months, shares of Zillow and Compass have gained 21.8% and 43.9%, respectively, indicating an underperformance compared with Opendoor.
OPEN's Valuation Trend
OPEN stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.55, as evidenced by the chart below. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.
Image Source: Zacks Investment Research
Given the discussed market players, both Zillow and Compass are currently trading at a premium valuation compared with Opendoor, with a forward 12-month P/S ratio of 6.94 and 0.61, respectively.
Earnings Estimate Revision of Opendoor
Opendoor's estimates of loss per share for 2025 have widened over the past 30 days to 24 cents from 21 cents. However, despite indicating a loss, the estimated figure for 2025 implies year-over-year growth of 35.1%.
Image Source: Zacks Investment Research
OPEN stock currently carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Opendoor Technologies Inc. (OPEN) : Free Stock Analysis Report
Zillow Group, Inc. (ZG) : Free Stock Analysis Report
Compass, Inc. (COMP) : Free Stock Analysis Report
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Fiddelke added, "I bleed Target red after 20 years here, and there's nothing more important to me than working with the incredible team that we have to chart the next chapter for Target. I mean, I've seen us in that 20 years at our best. I've seen us not at our best. When we're at our best, we are pretty darn tough to beat." To students of Target history such as myself, this decision isn't a surprise. For one, Fiddelke has been Cornell's right-hand man for several years now. It has become quite apparent over the past year that he was grooming Fiddelke to take over while also working behind the scenes to get board buy-in. I have gotten to know Fiddelke in recent years. He is a nice fella and has indeed earned the opportunity to sit in the CEO seat. If this was any other time for Target, the decision would probably be celebrated. It's not often an intern at a company becomes its CEO. The only comparable story I can think of is Walmart (WMT) CEO Doug McMillon going from truck loader at the retailer to CEO. But Fiddelke will unlikely have a honeymoon period, seeing as he has been there at Target during its past 24 months of struggles (which includes a weak second quarter). People I have talked to wanted an outsider as Target's next CEO, fresh eyes to come in and fix what is wrong (not unlike when Cornell was brought in back in 2014 — his career was mostly spent at Walmart and PepsiCo (PEP)). Fiddelke will be seen as a continuation of a strategy that hasn't been working. I asked him on the call how candid he plans to be in the early going on the strategy review, which is what all new leaders do. He sounded like he was ready to divert from Cornell's playbook and shake things up. He will have to do just that, and quickly, to win over a likely skeptical Wall Street. Target (TGT) is tapping a homegrown talent as its next CEO at one of the most pivotal moments in its 63-year history. The discounter announced that longtime CEO Brian Cornell's heavily groomed No. 2, Michael Fiddelke, will take over as CEO on Feb. 1, 2026. Cornell, who has been CEO of Target since August 2014, will slide into the executive chair position for an undetermined period of time. Fiddelke joined Target in 2003 as an intern and rose through the ranks to CFO and then COO. "I've had this conversation with the board for a number of years, and I've been in the role for 11 years. I'm going into my 12th now. I will actually turn 67 early next year, and I think it's time for me to step back, recharge, spend a lot more time with my family, a lot fewer nights in hotels, and be a great supporter of Michael and the team for the rest of my life," Cornell told me by video call while sitting next to Fiddelke at the company's Minneapolis headquarters. Fiddelke added, "I bleed Target red after 20 years here, and there's nothing more important to me than working with the incredible team that we have to chart the next chapter for Target. I mean, I've seen us in that 20 years at our best. I've seen us not at our best. When we're at our best, we are pretty darn tough to beat." To students of Target history such as myself, this decision isn't a surprise. For one, Fiddelke has been Cornell's right-hand man for several years now. It has become quite apparent over the past year that he was grooming Fiddelke to take over while also working behind the scenes to get board buy-in. I have gotten to know Fiddelke in recent years. He is a nice fella and has indeed earned the opportunity to sit in the CEO seat. If this was any other time for Target, the decision would probably be celebrated. It's not often an intern at a company becomes its CEO. The only comparable story I can think of is Walmart (WMT) CEO Doug McMillon going from truck loader at the retailer to CEO. But Fiddelke will unlikely have a honeymoon period, seeing as he has been there at Target during its past 24 months of struggles (which includes a weak second quarter). People I have talked to wanted an outsider as Target's next CEO, fresh eyes to come in and fix what is wrong (not unlike when Cornell was brought in back in 2014 — his career was mostly spent at Walmart and PepsiCo (PEP)). Fiddelke will be seen as a continuation of a strategy that hasn't been working. I asked him on the call how candid he plans to be in the early going on the strategy review, which is what all new leaders do. He sounded like he was ready to divert from Cornell's playbook and shake things up. He will have to do just that, and quickly, to win over a likely skeptical Wall Street. US tech stocks hit by concerns over future of AI boom Wall Street is digging into the factors behind this week's selloff in tech stocks, with many seeing it as a timely rotation out of riskier names. There are a few potential triggers, the Financial Times reports: Read more here (premium) Wall Street is digging into the factors behind this week's selloff in tech stocks, with many seeing it as a timely rotation out of riskier names. There are a few potential triggers, the Financial Times reports: Read more here (premium) Premarket trending tickers: Estée Lauder, Micron and Toll Brothers Here's a look at some of the top stocks trending in premarket trading: Estée Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Micron Technology, Inc. (MU) shares slipped 2% in premarket trading Wednesday following news that the US government is looking into taking equity stakes in computer chip manufacturers that received CHIPS Act funding to build factories in the US. Toll Brothers (TOL) stock fell 3% before the bell after beating Wall Street estimates for its third quarter earnings. A slowdown in new orders weighed on the stock, sending shares down. Here's a look at some of the top stocks trending in premarket trading: Estée Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Micron Technology, Inc. (MU) shares slipped 2% in premarket trading Wednesday following news that the US government is looking into taking equity stakes in computer chip manufacturers that received CHIPS Act funding to build factories in the US. Toll Brothers (TOL) stock fell 3% before the bell after beating Wall Street estimates for its third quarter earnings. A slowdown in new orders weighed on the stock, sending shares down. US housing warning sparks worst James Hardie selloff since 1973 A profit warning from James Hardie (JHX, has fueled worries about recession in the US housing market and sent the Australian building materials giant's stock tumbling on Wall Street before the bell. Bloomberg reports: Read more here. A profit warning from James Hardie (JHX, has fueled worries about recession in the US housing market and sent the Australian building materials giant's stock tumbling on Wall Street before the bell. Bloomberg reports: Read more here. Gold maintains drop with Fed in focus Bloomberg reports: Read more here. Bloomberg reports: Read more here.
