Opendoor Stock Is At Record Lows

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Opendoor Stock Is At Record Lows

Opendoor Stock Is At Record Lows. Should You Buy It?

Opendoor Technologies is trading in the red when compared with its closing price last year. However, the management has been making many changes and improving things. Despite these efforts, the market is still not confident that Opendoor Technologies is moving closer to profitability.

The stock price clearly reflects that investors are pessimistic about the overall US housing market. This naturally affects a company like Opendoor Technologies that's involved in the real estate market.

Opendoor Remains A Loss-Making Business

So, should you consider buying Opendoor Technologies stock while it trades at a 52-week low? Or is the risk too high, and you should wait for things to improve? Let's take a look.

Opendoor buys and sells real estate properties via its online platform. One thing that makes Opendoor stand out from others is that it offers instant cash offers on properties.

The company buys the homes and then repairs them. After that, they are relisted for sale on the online platform. The business model looks good on paper, but Opendoor Technologies is actually in the red.

However, the Q2 results of Opendoor Technologies show a lot of positives. During that period, the revenue of Opendoor increased by 23% q/q.

The company also signed 5908 acquisition contracts by spending just $5 million in marketing. Earlier, the company had only managed to sign 6000 contracts on a marketing budget of $81 million.

The CEO of Opendoor remains confident that they are heading towards a positive net income. They cited the increasing revenue, lower costs, and other positive developments.

But we must also consider the fact that adjusted net loss has gone up from just $9 million in the previous year to almost $30 million this year.

So, should you consider buying Opendoor stock at a discount? The financials tell us that Opendoor stock is not a good option for risk-averse investors. It is better to wait for things to actually improve before considering Opendoor stock.

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