Is Opendoor Busted?

Summary

• OPEN seems at the crossroads of growth and destruction, given the expansion to multiple markets during the cooling property market.
• With multiple temporary headwinds, OPEN will likely suffer from lower contribution margins in H2'22. Therefore, rendering stock recovery unlikely in the near term.
• However, given the robust initiatives from OPEN's highly competent management, we may potentially see a turnabout by mid-2023, once the macro economy recovers.
• Therefore, bulls may consider adding at the Fed's next interest hike in September 2022, assuming a meaningful retracement.

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Investment Thesis

Opendoor Technologies Inc. (NASDAQ:OPEN) remains a highly speculative play we are closely monitoring, given its growing dominance in the iBuying segment and expansion to 51 markets as of FQ2'22. Assuming continued migration from

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.