[looneystocks]

I think what we are losing sight of is that they have expanded into many new markets...with this business development cost they still turned a profit!!

As they perfect their software and gain acceptance... I can see the day that they will not have to invest so much money in inventory. It will be just a transactional fee with matching buyers with sellers, charging a nominal fee of 1.5% and add the value added services., mortgage, moving, remoldeing, etcc....

[santafe2]

Agree, they have a chance to be the disruptive force in real estate transactions. This Thursday I will be a long term investor as my shares will have been held for a year. I can wait much longer as it's a brilliant idea in a very tough environment.

[looneystocks]

trivia question!!

When did amazon first run a profit?
What were the sales that quarter?
How much was it trading for at that time?

What was the high of amazon prior to that quarter and low?

Check out it out and compare to OPEN...

[351stang]

wonder why there not addressing the $22.00 lose per share value in less than a year. im sure they wont.

[351stang]

this company sucks

[santafe2]

That's all great news. Unfortunately the market is still selling small cap growth.

[subslover]

Opendoor Announces First Quarter of 2022 Financial Results
SAN FRANCISCO, California - May 5, 2022 - Opendoor Technologies Inc. (Nasdaq: OPEN), a leading digital platform for residential real estate transactions, today reported financial results for its quarter ended March 31, 2022. Opendoor’s first quarter of 2022 financial results and management commentary can be accessed through the Company’s shareholder letter on the quarterly results page of Opendoor’s investor relations website at https://investor.opendoor.com.
“We are proud to report our first quarter of positive net income as we exceeded our expectations across all of our key metrics,” said Eric Wu, Co-founder and CEO of Opendoor. “For the past eight years, we have been working on the rare opportunity to transform the $2.3 trillion housing industry. We have made significant progress toward reshaping a broken, offline process into a digital, seamless experience for our customers.”

Wu continued: “We have also focused on building a durable, generational company. This means we align our goals and teams against both growing customers and driving sustainable margin expansion, operating with a focus on building the lowest cost structure, and having a culture of discipline around pricing and risk management across periods of uncertainty. The result of this hard work is the capability to grow and protect margins across economic cycles.”
First Quarter 2022 Key Highlights
•Highest quarterly revenue of $5.2 billion, up 590% versus 1Q21; with 12,669 total homes sold, up 415% versus 1Q21, demonstrating rapid consumer adoption of our product offerings
•Record gross profit of $535 million, versus $97 million in 1Q21, up 452% versus prior year; gross margin of 10.4%, versus 13.0% in 1Q21
•First quarter of positive net income of $28 million, versus $(270) million in 1Q21
•Adjusted Net Income of $99 million, versus $(21) million in 1Q21
•Record Contribution Profit of $332 million, versus $76 million in 1Q21, up 337% versus prior year; 21st consecutive quarter of positive Contribution Margin which was 6.4%, versus 10.2% in 1Q21
•Adjusted EBITDA of $176 million versus $(2) million in 1Q21; fourth consecutive quarter of positive Adjusted EBITDA and three times higher than what was generated in all of 2021; Adjusted EBITDA Margin of 3.4% versus (0.3)% in 1Q21
•Inventory balance of 13,360 homes, representing $4.7 billion in value, up 455% versus 1Q21
•Purchased 9,020 homes, up 151% versus 1Q21
•Launched San Francisco Bay Area, bringing us to 45 markets at the end of 1Q22
Outlook
•2Q22 revenue guidance of $4.1 billion - $4.3 billion, up 254% YoY at the midpoint of range

[santafe2]

OPEN needs to survive this uptick in interest rates. It won't last that long. Often a great company has to pass through a trial by fire to further hone their business plan. I like this one. In two weeks I will have owned it for a year and I've been adding in the $6-$7 range.

[IL Padrino]

This guy estimates OPEN is worth about $73. Interesting

https://seekingalpha.com/article/4507195-opendoor-stock-ultimate-stock-for-high-inflation-environment?mailingid=27608383&messageid=must_reads&serial=27608383.448535&utm_campaign=Must%2BRead%2BMay%2B5%2C%2B2022&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads

[santafe2]

Not at all. We are living through a 100% risk-off environment. MRNA crushes their numbers, get's crushed. AMZN invests in RIVN get beaten down like they're going out of business. LYFT beats on earnings lowers guidance and drops 33% in about 10 minutes. Growth stocks in a high inflation environment just don't sell well at all. Small cap growth where capital is needed and getting more expensive, even worse. We'll have to wait for the Fed to ease up and inflation to slow down. Personally I think we're closer to a mild recession than continued inflation. Core CPI should start moving down with the upcoming April report. I don't expect the market to turn around until the Fed indicates they'll take their foot off the pedal and who knows what the egghead patrol will do. My favorite Fed comment of all time is from Greenspan regarding the Financial Crisis: Who knew?

[351stang]

am i missing something

[Norton1973]

OPEN, Opendoor the world we live in....Check out @Longtermplay message on StockTwits http://stocktwits.com/Longtermplay/message/456335071

[351stang]

the only thing to do now is to average down until this POS comes back some day, who knows how long that will be. $27.00 to $7.00 WOW

[santafe2]

Opendoor, a residential real estate iBuyer that acquires houses directly from sellers and then resells them, lost $0.31 per share in the quarter on revenue of $3.82 billion. The earnings missed Wall Street's expectation for a $0.18-per-share loss, though revenue did come in ahead of the $3.17 billion estimate.

[351stang]

can anyone explain why this POS is down today

[santafe2]

At their Q3 conference call OPEN projected $3.1-$3.2B in Q4 revenue and profit at breakeven. Price action over the last week or so has been moderately positive moving up to $11 this morning but it will need to move above $15 to break above this year's downtrend.

[santafe2]

Opendoor to Report Fourth Quarter and Full Year 2021 Financial Results on February 24, 2022

Opendoor Technologies Inc. (“Opendoor”) (Nasdaq: OPEN), a leading digital platform for residential real estate, announced that it will report fourth quarter and full year 2021 financial results for the period ended December 31, 2021, following the close of the market on Thursday, February 24, 2022. On that day management will host a conference call and webcast at 2:00 p.m. PT (5:00 p.m. ET) to discuss the company’s business and financial results.

What: Opendoor Fourth Quarter and Full Year 2021 Earnings Conference Call
When: Thursday, February 24, 2022
Time: 2:00 p.m. PT (5:00 p.m. ET)

Live Webcast: A live webcast of the call can be accessed from the Events and Presentations page of the investor relations website, https://investor.opendoor.com

Replay: An archived webcast of the conference call will be available on Opendoor’s investor relations website for one year following the live call at https://investor.opendoor.com

About Opendoor
Opendoor’s mission is to empower everyone with the freedom to move. Since 2014, Opendoor has provided people across the U.S. with a radically simple way to buy, sell or trade-in a home. Opendoor operates in a growing number of markets across the U.S.

For more information, please visit www.opendoor.com.

[IL Padrino]

I think I finished loading up. Hopefully this heads back to the $20's by summer.

[santafe2]

Yes, thanks BofA. Does anyone else think BofA is short OPEN and touting their own book? Consensus estimate is over 3X the BofA analyst estimate. Also the Barron's writer in the article below referred to OPEN's business model as "house-flipping". I let them know what I thought of the characterization. If anyone else would like to comment, you can do it here, (may require a subscription).

iBuying is risky per BofA

Opendoor Stock Tumbles. The ‘iBuying Model Is Risky.’

Opendoor Technologies was falling on Wednesday after BofA Securities took a bearish view on the real estate platform despite growing revenue. It’s the iBuying model the analysts don’t like.

BofA analyst Curtis Nagle initiated coverage on shares of Opendoor (ticker: OPEN) at Underperform with an $8 price target. The stock fell about 3% to $10.34 on Wednesday.

iBuying — the buying and selling of homes online — is seen by Nagle as an “inherently risky and largely untested business model that carries low to negative margins and requires high debt to finance transactions,” he wrote in a research note.

Moreover, the digital platform’s inventory growth significantly has outpaced revenue growth in 2021, meaning that Opendoor has purchased more houses using large amounts of debt and sold less. The ratio of purchased to sold homes rose to nearly 3-to-1 in the third quarter even as the housing market started slowing down in late 2021.

Home prices have been falling and existing home turnover is expected to turn negative in 2022 after two strong years, said Nagle, adding to the list of factors overshadowing the company’s growing revenue and a high potential for shares gains.

Opendoor shares have declined more than 50% since rival Zillow’s (Z) exit from iBuying, signaling markets’ hesitancy in betting on the home-flipping business. That said, the exit late last year from Zillow does remove competition for Opendoor, challenging the negative outlook for the stock, Nagle said.

BofA estimates Opendoor will report a loss of 81 cents a share in 2022, wider than the loss of 45 cents expected by analysts polled by Bloomberg. BofA projects $12.19 billion in sales at Opendoor for 2022 vs. $7.42 billion in 2021.

Opendoor is rated at Overweight by analysts tracked by FactSet with an average target price of $25.57.

[351stang]

how nice, a downgrade

[santafe2]

The linked article on Seeking Alpha offers a good overview of OPEN. The author begins by explaining his previous incorrect assumptions regarding the iBuyer market and follows with his new assumptions which I believe are correct.

In Q3 2021 the iBuyer market represented 1.6% of the US housing market and OPEN owns 80% of that market. The current market cap is 1/2 2022 sales estimates. We'll learn more next month when Q4 earnings are released.

A monopoly requires proprietary technology, economies of scale, network effects and brand

I've also posted a comment below that one of the readers made for anyone too busy to read the article.

Another point of synergy that you touch on is that OPEN is gunning to be the de facto market maker/liquidity provider for residential RE in it's operating markets. The combination of being a market maker AND a monopoly is such a huge potential that it is well worth the risk.

The profitability of market makers in general, such as Citadel in equities, is unquestioned, and based on their execution so far, it is highly likely that Eric Wu and his team will position themselves to profit/increase their margins whether the broader real estate market goes up, down, or simply goes sideways.

[351stang]

to many projects, 3 pre 67 volkswagons that i restore and sell. 50 studebaker pick up for myself with a 383 stroker motor.....come on open

[IL Padrino]

Love my Windsor. Amazing power for a 50 yo engine. Will put a 427 in eventually.

Hopefully OPEN will get you the profit to buy a new project soon!

[351stang]

1966 mustang, put a 351 in it. kinda a bitch to do but it hauled ass. built it for my son. he had to sell it a while back, TWINS, kids will do it everytime

[santafe2]

Being disappointed is more than reasonable. All of us who own OPEN and other small cap tech stocks are disappointed in the current outcome. As I said in the earlier post, I don't think it's fair or reasonable to blame the company. We have been in a risk off environment since November. Money is rotating out of growth stocks and as the larger chart below shows, small cap growth stocks have been hit the hardest.

I'll use an obvious example to make my point. There would have been no reason in March of 2020 to blame the airlines when their stocks dropped an average of 65% over two months. Smaller chart just below.

[IL Padrino]

Me too, but I believe it will turn around next year. Just got another 1k shares to average down.

BTW, My 69 Mach has the original 351. What year is your car?

[351stang]

not a coin flipper, just someone who's disappointed in pps. im here as long as it takes to get my money back with profit. some people make wrong judgements about others, im sure im not the only one who's disappointed in this stock

[santafe2]

I think when one resorts to emotional responses and buys stock in a company using bottom up analysis it's always incorrect. All successful investors use top down analysis. They begin by analyzing economic forces, then market level, sector level, industry level and finally company level analysis.

You can always tell when someone is coin flipping and their analysis consists of hope and prayer. When it doesn't work out the way they hoped and prayed it would they blame the company when it's the investors fault for not doing the research and understanding risks.

I'm not adding here because inflation does not appear to be done churning through US$ denominated investments. That means the cost of a home loan will increase over the next few to several months and the Fed may clamp down harder than they should. They're always late to react and often over react. It could get worse before it gets better.

[IL Padrino]

Well, he’s not wrong

[santafe2]

That seems to be your opinion about several small cap stocks. The current market does not favor growth stocks, especially start-ups. With inflation high future earnings are being heavily discounted. IMO, inflation should begin to moderate by mid year if not before. That is of course no guarantee OPEN will move up. They need to continue to execute.

[351stang]

what a pos, this is not normal to lose this much value in such a short time

[Norton1973]

Blockbuster Growth Is Close For Opendoor Technologies (NASDAQ:OPEN) | Seeking Alpha
https://seekingalpha.com/article/4477068-blockbuster-growth-knocking-opendoor-technologies

[santafe2]

I'm also wondering if they're designing a rental model as an adjunct business to the sales model. Rent-to-own may be an excellent way to move slow moving properties.

[IL Padrino]

Yes. I looked at their website and noticed they’re only in a handful of states right now.
It will take time, but either by way of growing slowly over time, or via buyout by Amazon (not likely), they will be a mega business in 5-10 years.

One thing will always be true. No matter how advanced technology becomes, and how many businesses will become obsolete because of it, people will always need homes to live in. OPEN’s business model is impervious to change.

[santafe2]

From Briefing.com: OPEN Director bought 137,533 shares at $14.50 - $14.55 worth ~ $2.0 mln

[santafe2]

I think you've done a good job of analyzing the arguments for OPEN. The reason OPEN stock price has struggled is the current inflation environment. It's very real right now and if it continues up through the 2022 buying season investors sense it will be a drag on housing.

Given the generational arguments you've made I don't think a 1-2% move up in interest rates will cause housing prices to fall or for acquisition rates to slow. There is another very large cohort of buyers who pay cash. For them, interest rates don't matter.

OPEN still has a long runway to scale up all of their services and locations so they can provide a universal vertically integrated buying and selling experience in all their markets. When I look at a fully integrated OPEN they seem like a good acquisition for AMZN if they have more appetite for traditional business managed in a 21st Century manner.

[IL Padrino]

When I initially got this stock a few months ago, it was at $25. Has not reached that level since and I was a little frustrated. But I see it has a decent BB between $16-$24 ish. Today was the first day I added on a dip and more than doubled my position, averaging down.

There are 2 main factors that gives me much confidence this is a good investment. 1, That Zillow is out of the equation, which means those potential customers will go with Open. 2, The YoY growth is phenomenal. That can only improve. The upcoming generations who will be in a position to buy a house in the short and long term future live and die on the internet. This "Amazon" generation will be completely comfortable at buying a house online, and will actually prefer it. I'm 47 and I would prefer that myself.

[Norton1973]

OPEN, Opendoor, I just add when I can on the dips.

[IL Padrino]

That's a great summary. Just a matter of time before this takes off.

[Norton1973]

Check out @THEONETHE0NLY message on StockTwits http://stocktwits.com/THEONETHE0NLY/message/409653550

OPEN, Opendoor

[santafe2]

Opendoor went public July of 2020 and took over the OPEN ticker symbol that had been used by OpenTable before they were acquired by Priceline in 2014 for $2.6B. Priceline is now Booking Holdings Inc. - BKNG.

Although it's now closed to new posts, you can find the OpenTable board here:
https://investorshub.advfn.com/Opentable-Inc-15462

Hope that helps.

[IL Padrino]

Question for anyone in the know: What was the reason for the price drop from $100ish a share?

[Norton1973]

OPEN, Opendoor Technologies stock surges after Q3 revenue guidance | Seeking Alpha
https://www.google.com/amp/s/seekingalpha.com/amp/news/3768978-opendoor-technologies-stock-surges-after-q3-revenue-guidance

[santafe2]

OPENDOOR IS NOT ZILLOW!!

Opendoor Technologies (NASDAQ:OPEN) stock jumps 19% in after-hours trading after the iBuying company posts better-than-expected Q3 earnings and issues strong guidance.

Sees Q4 revenue of $3.1B-$3.2B, higher than the consensus of $2.92B; sees Q4 adjusted EBITDA of -$5M to +$5M

Q3 adjusted EBITDA of $35M vs. Visible Alpha consensus of $21.4M.
Q3 gross margin of 9.9% vs. 13.4% in Q2; contribution margin of 7.5% vs. 10.8% in Q2.

Purchased 15,181 homes, up 79% from Q2.

Increased inventory balance to 17,164 homes, representing $6.3B in value, up 130% Q/Q.

"Our third quarter results are the byproduct of our focus on the consumer experience and strong, consistent execution. We exceeded our expectations in generating $2.3B of revenue, acquiring 15,181 homes, and delivering over $170M of contribution profit and $35M of adjusted EBITDA," said co-founder and CEO Eric Wu.

[santafe2]

The following is from a larger article on missteps made by Zillow over the summer. Buying too many homes during the summer peak will cost Zillow over $500MM over Q3 & Q4 according to Barron's.

The largest iBuying player is Opendoor Technologies (OPEN). The $14.5 billion market cap company was founded in 2014 and went public at the end of last year via a special-purpose acquisition company merger. The majority of Opendoor’s $1.2 billion in second-quarter revenue came from the sale of homes. Opendoor has navigated pricing in the housing market better than Zillow, says Wedbush’s Arounian, citing the companies’ adjusted gross profit margins.

“There’s certainly going to be movement in the housing market, but we feel very well equipped to identify those movements and adjust,” Eric Wu, Opendoor’s CEO, tells Barron’s. Opendoor operated in 39 markets as of July and is expanding its services. The company on Friday said it had acquired RedDoor, a digital mortgage brokerage.

[Norton1973]

OPEN, is doing great...just because ZG zillow screwed up, not Opendoors issues.

Zillow went horribly wrong!

[santafe2]

Opendoor to Report Third Quarter 2021 Financial Results on November 10, 2021

SAN FRANCISCO, Calif., Oct. 12, 2021 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (“Opendoor”) (Nasdaq: OPEN), a leading digital platform for residential real estate, today announced that it will report third quarter 2021 financial results for the period ended September 30, 2021, following the close of the market on Wednesday, November 10, 2021. On that day management will host a conference call and webcast at 2:00 p.m. PT (5:00 p.m. ET) to discuss the company’s business and financial results.

What: Opendoor Third Quarter 2021 Earnings Conference CallWhen: Wednesday, November 10, 2021Time: 2:00 p.m. PT (5:00 p.m. ET)Live Webcast: A live webcast of the call can be accessed from the Events and Presentations page of the investor relations website, https://investor.opendoor.com

Replay: An archived webcast of the conference call will be available on Opendoor’s investor relations website for one year following the live call at https://investor.opendoor.com

About OpendoorOpendoor’s mission is to empower everyone with the freedom to move. Since 2014, Opendoor has provided people across the U.S. with a radically simple way to buy, sell or trade-in a home. Opendoor operates in a growing number of markets across the U.S.

For more information, please visit www.opendoor.com.

Contacts

Investors:Elise [e-mail]

Media:Sheila Tran / Charles [e-mail]