## Opendoor’s Rollercoaster Ride: From Near Collapse to Investor Buzz
Opendoor, the online real estate platform, has experienced a wild ride recently. After a near-death experience, the company’s stock has surged, only to face a post-earnings dip. Here’s a breakdown of what’s happening:
- **Stock Surge and CEO Gratitude:** Opendoor’s stock saw a massive increase, nearly quintupling since July. CEO Carrie Wheeler expressed gratitude for investor enthusiasm, even as the stock fell after the earnings call.
- **Near Bankruptcy:** The company was on the brink, with its stock plummeting to 51 cents in late June. A reverse stock split was considered to maintain its Nasdaq listing.
- **Business Model:** Opendoor uses technology to buy and sell homes, profiting from the difference. It went public via SPAC in 2020, during the real estate boom.
- **Impact of Rising Interest Rates:** Higher interest rates in 2022 significantly reduced demand, causing revenue to plummet by two-thirds.
- **Investor Interest:** Hedge fund manager Eric Jackson’s investment in Opendoor fueled the stock’s recent rise, with Jackson predicting a much higher stock price.
- **Mixed Financial Results:** While Q2 revenue increased slightly, the company projects a significant revenue decline in the current quarter. Losses have narrowed.
- **Market Deterioration:** The housing market continues to struggle due to high mortgage rates, impacting Opendoor’s performance.
- **Strategic Shift:** Opendoor is shifting towards a referral business model, aiming to be less capital-intensive.
- **Investor Reaction:** Investors were not impressed with the earnings report, leading to a stock drop.
- **Looking Ahead:** The CEO sees the increased visibility as an opportunity to share the company’s story.
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