Latest news with #OpendoorTechnologies
Business Insider
2 days ago
- Business
- Business Insider
Opendoor Technologies seeks reverse stock split
Opendoor Technologies (OPEN) filed a preliminary proxy statement. The proxy statement was furnished in connection with the solicitation of proxies by Opendoor's Board of Directors for use at the company's Special Meeting of Stockholders to be held on Monday, July 28, 2025, at 9:30 a.m. Pacific Time. 'Our Board has adopted and is recommending that our stockholders approve amendments to our Certificate of Incorporation, to effect a reverse stock split of our common stock at a ratio ranging from any whole number between 1-for-10 and 1-for-50, with the exact ratio within such range to be determined by the Board in its discretion, subject to the Board's authority to determine when to file the amendment and to abandon the other amendments notwithstanding prior stockholder approval of such amendments.' Confident Investing Starts Here:
Yahoo
11-05-2025
- Business
- Yahoo
Why Opendoor Technologies Stock Was Tumbling Today
Opendoor is refinancing and taking on new convertible debt. The company appears to be a long way from profitability. It burned nearly $700 million in operating cash flow over the last four quarters. 10 stocks we like better than Opendoor Technologies › Shares of Opendoor Technologies (NASDAQ: OPEN), the leading online home flipper, were falling today after the company said it was refinancing convertible debt and taking on new debt, which seems to confirm that the company is struggling to turn profitable, as we saw in its first-quarter earnings report. As of 1:57 p.m. ET, the stock was down 18.9%. In a filing, the company said it was refinancing $245.8 million in 2026 notes with notes due in 2030, with an interest rate of 7%. It's also raising an additional $79.2 million in new debt at 7% as well. The conversion price will be $1.57 per share, an 80% premium to its closing price yesterday, meaning that the debt can be converted at a price equivalent to $1.57, though the bondholders would only convert if Opendoor's price went above that. Such a conversion would lead to substantial dilution for Opendoor, as its current market cap is just $515.8 million. The debt refinancing isn't necessarily a bad thing for Opendoor, as it gives the company more financial flexibility and capital, and pushes out the 2026 debt repayment. However, it does show that the company is operating from a weak financial position, and a profitable future increasingly seems distant, given its inability to generate a profit so far and the weakness in the housing market. The company finished its first quarter with $559 million in cash and has lost $696 million in operating cash flow in the last four quarters, showing its cash burn rate is substantial. Despite its low price, the stock could easily head lower. Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Opendoor Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Opendoor Technologies Stock Was Tumbling Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Opendoor Technologies Inc. (OPEN): A Bull Case Theory
We came across a bullish thesis on Opendoor Technologies Inc. (OPEN) on Substack by LongYield. In this article, we will summarize the bulls' thesis on OPEN. Opendoor Technologies Inc. (OPEN)'s share was trading at $0.872 as of May 7th. A real estate agent overviewing a portfolio of houses in the city. Opendoor Technologies Inc. (OPEN), a pioneer in e-commerce for residential real estate, reported its Q1 2025 results amid a tough housing environment defined by high mortgage rates, weak buyer demand, and elevated delistings. Operating in 50 U.S. markets since 2014, Opendoor has retooled its strategy to maintain stability and edge closer to profitability. With mortgage rates nearing 7%, transaction volumes have slowed, forcing the company to adapt. Opendoor responded by increasing spreads to preserve margins, even if it meant acquiring fewer homes. This discipline is underpinned by refined pricing algorithms and targeted marketing, helping the company adjust to seasonal and regional market conditions. At the same time, Opendoor is piloting an agent partnership model in 11 markets, referring sellers to vetted agents who can offer both cash and traditional listings. This initiative is designed to improve conversion rates and drive asset-light commission-based revenue, reducing inventory risk while broadening the company's service offerings. This strategic evolution marks Opendoor's shift from a cash-offer platform to a broader selling options platform. Leadership emphasized adaptability on the earnings call, striking a balance between caution and long-term optimism. Financially, Q1 2025 showed signs of resilience: revenue held steady at $1.2 billion, up 6% sequentially, while home acquisitions rose 4% year-over-year to 3,609. Contribution profit landed at $54 million (4.7% margin), down slightly from the prior year, but the adjusted EBITDA loss narrowed to $30 million from $50 million, driven by reduced operating expenses. Fixed costs fell 33% year-over-year, from $58 million to $39 million, reflecting the company's focus on lean operations. Opendoor's liquidity remains strong, with $559 million in unrestricted cash and $1 billion in total capital. Its $7.9 billion in nonrecourse asset-backed borrowing capacity—$2.3 billion of which is committed—offers significant financial flexibility, bolstered by recently renewed facilities running through at least 2027. Looking ahead, Opendoor's Q2 2025 guidance reflects cautious progress. It expects $1.45–$1.525 billion in revenue and positive adjusted EBITDA of $10–$20 million—its first in three years. Contribution profit is forecast at $65–$75 million with stable margins. However, home acquisitions will fall to ~1,700, reflecting wider spreads and reduced marketing spend, measures intended to protect capital but which may limit top-line growth later in the year. Still, Opendoor's post-earnings stock surge of 9.37% signals investor confidence in its path to profitability. Analysts offered mixed reviews: some, like Citi, cut price targets due to persistent macro headwinds and a 69% year-over-year stock decline, while others acknowledged the company's cost discipline and strategic adaptability. The agent partnership pilot and continued technology investment—including faster offer delivery and better user interfaces—position Opendoor to scale more efficiently. Yet risks remain: elevated rates, potential home price declines (especially in the South), and economic policy changes could challenge execution. Nevertheless, Opendoor's strategic realignment, robust liquidity, and operational tightening paint a picture of a company that, while cautious, is actively positioning itself for long-term relevance. As the U.S. housing market finds its footing, Opendoor stands out as a leaner, smarter platform well-poised to capitalize on future recovery. Opendoor Technologies Inc. (OPEN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held OPEN at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of OPEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OPEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Opendoor Technologies Inc. (OPEN): A Bull Case Theory
We came across a bullish thesis on Opendoor Technologies Inc. (OPEN) on Substack by LongYield. In this article, we will summarize the bulls' thesis on OPEN. Opendoor Technologies Inc. (OPEN)'s share was trading at $0.872 as of May 7th. A real estate agent overviewing a portfolio of houses in the city. Opendoor Technologies Inc. (OPEN), a pioneer in e-commerce for residential real estate, reported its Q1 2025 results amid a tough housing environment defined by high mortgage rates, weak buyer demand, and elevated delistings. Operating in 50 U.S. markets since 2014, Opendoor has retooled its strategy to maintain stability and edge closer to profitability. With mortgage rates nearing 7%, transaction volumes have slowed, forcing the company to adapt. Opendoor responded by increasing spreads to preserve margins, even if it meant acquiring fewer homes. This discipline is underpinned by refined pricing algorithms and targeted marketing, helping the company adjust to seasonal and regional market conditions. At the same time, Opendoor is piloting an agent partnership model in 11 markets, referring sellers to vetted agents who can offer both cash and traditional listings. This initiative is designed to improve conversion rates and drive asset-light commission-based revenue, reducing inventory risk while broadening the company's service offerings. This strategic evolution marks Opendoor's shift from a cash-offer platform to a broader selling options platform. Leadership emphasized adaptability on the earnings call, striking a balance between caution and long-term optimism. Financially, Q1 2025 showed signs of resilience: revenue held steady at $1.2 billion, up 6% sequentially, while home acquisitions rose 4% year-over-year to 3,609. Contribution profit landed at $54 million (4.7% margin), down slightly from the prior year, but the adjusted EBITDA loss narrowed to $30 million from $50 million, driven by reduced operating expenses. Fixed costs fell 33% year-over-year, from $58 million to $39 million, reflecting the company's focus on lean operations. Opendoor's liquidity remains strong, with $559 million in unrestricted cash and $1 billion in total capital. Its $7.9 billion in nonrecourse asset-backed borrowing capacity—$2.3 billion of which is committed—offers significant financial flexibility, bolstered by recently renewed facilities running through at least 2027. Looking ahead, Opendoor's Q2 2025 guidance reflects cautious progress. It expects $1.45–$1.525 billion in revenue and positive adjusted EBITDA of $10–$20 million—its first in three years. Contribution profit is forecast at $65–$75 million with stable margins. However, home acquisitions will fall to ~1,700, reflecting wider spreads and reduced marketing spend, measures intended to protect capital but which may limit top-line growth later in the year. Still, Opendoor's post-earnings stock surge of 9.37% signals investor confidence in its path to profitability. Analysts offered mixed reviews: some, like Citi, cut price targets due to persistent macro headwinds and a 69% year-over-year stock decline, while others acknowledged the company's cost discipline and strategic adaptability. The agent partnership pilot and continued technology investment—including faster offer delivery and better user interfaces—position Opendoor to scale more efficiently. Yet risks remain: elevated rates, potential home price declines (especially in the South), and economic policy changes could challenge execution. Nevertheless, Opendoor's strategic realignment, robust liquidity, and operational tightening paint a picture of a company that, while cautious, is actively positioning itself for long-term relevance. As the U.S. housing market finds its footing, Opendoor stands out as a leaner, smarter platform well-poised to capitalize on future recovery. Opendoor Technologies Inc. (OPEN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held OPEN at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of OPEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OPEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Opendoor Stock Now Costs Less Than a Slice of Pizza. Is There Any Way Back?
Opendoor's recovery efforts have been hampered by a stubborn real estate market. It beat Wall Street's expectations for revenue and loss per share in the first quarter. Opendoor stock trades for less than $1 per share. 10 stocks we like better than Opendoor Technologies › Opendoor Technologies' (NASDAQ: OPEN) misfortunes continue to deepen as the real estate market remains stuck, with no light showing yet at the end of the tunnel. It's joined the ranks of penny stocks and keeps sliding, down 56% this year alone and trading at dangerously low levels at under $1 per share. Is there any hope left for Opendoor, or should investors stay far away? Opendoor is an iBuyer, which means it buys homes directly from sellers, fixes them up, and then sells them at a higher price. It's a simple business model that individuals have been using forever, and Opendoor takes it up a notch by scaling it into a full, digitally supported platform. It also offers an assortment of complementary services, such as an online marketplace and agent services, and it's always expanding its features to meet demand and create options for sellers and buyers. When the company went public in 2020, interest rates were historically low, and real estate was booming. The company's strong performance has now been hampered by high interest rates and a housing market that isn't budging. According to the latest market data, housing prices are still rising, and the median home price reached $430,838 in March. Homes sold declined by 2.7%, and the average 30-year fixed mortgage rate declined by 0.17%, but was still high at 6.7%. Homes are also selling at their slowest pace in six years, with the average home on the market for 47 days before going under contract. Opendoor's management is tweaking its model to get the best it can out of the current circumstances. Instead of relying on its core product of making cash offers to home sellers, it's expanding its agent network with a program for agents to connect with potential homebuyers and explain the options. It's also shifting its marketing and ad spend to find more homes for sales in the off-season, which are prepared for resale in the high season. A company as large as Opendoor believes it has the leverage to do that successfully. Opendoor released its latest update this week, and although I would call it mixed, the market responded positively. Results were better than expected, and management gave a pleasing outlook. Sales were down 2% from last year in the 2025 first quarter, but they beat Wall Street's expectations, and houses sold were down 4%. Gross profit was $99 million, down from $115 million last year, and gross margin was 8.6%, down from 9.7% last year. Net loss improved from $109 million in 2024 to $85 million in 2025, and loss per share was also better than Wall Street was looking for. In some forward-looking metrics, it purchased 3,609 homes, 22% more than last year, but it ended the quarter with 1,051 homes under contract -- 60% lower than last year. Beating expectations is certainly a step in the right direction, but there isn't enough progress to say Opendoor is out of the woods. A business turnaround will require a much stronger housing market, and the company doesn't have control over that. Management's work with what it does have control over is confidence-boosting, but the company will remain in a challenging position until external forces change. Opendoor's platform might be better than the traditional system, but it's not good enough to beat back current headwinds. As those headwinds remain strong, Opendoor can't bounce back. At the current price, Opendoor stock trades at a price-to-sales ratio of less than 0.1, but it's not a bargain if you don't expect the stock to move higher anytime soon. I wouldn't say there's no hope for Opendoor, but there doesn't look like any reason for investors to tie up money in this stock while the environment remains unfavorable. There are better places to park your money right now, or you might enjoy that slice of pizza. Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Opendoor Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Opendoor Stock Now Costs Less Than a Slice of Pizza. Is There Any Way Back? was originally published by The Motley Fool
