Opendoor Technologies Inc. (Open): A Bull case theory

We met with a bullish thesis to Opendoor Technologies Inc. (Open) in Longyield Switchack. In this article, we will summarize the thesis of Bulls in Open. The fee of Opendoor Technologies Inc. (Open) was contributed to $ 0.872 from May 7^th.

A real estate agent of general vision of a portfolio of houses in the city.

Opendoor Technologies Inc. (Open), a pioneer in e -commerce for residential real estate, reported its results from the first quarter of 2025 in the middle of a harsh housing environment defined by high mortgages, demand for weak buyers and high detachments. Opendoor, which operates in 50 North -Americans, Opendoor has again modified its strategy to maintain stability and advantage closest to profitability. With about 7%mortgage rates, volumes of transactions have slowed down, forcing the company to adapt. Opendoor responded by increasing the distributions to preserve the margins, even if it meant acquiring fewer houses. This discipline is based on refined price algorithms and directed marketing, helping the company to adjust to the seasonal and regional market conditions. At the same time, Opendoor is piloting a model of collaboration of agents in 11 markets, referring to vendors to revised agents who can offer cash and traditional listings. This initiative is designed to improve conversion rates and promote revenue based on the asset light commission, reducing the risk of inventory while also extending the company’s services.

This strategic evolution marks the Opendoor change of an cash supply platform to a larger sales options platform. The leadership emphasized the adaptability in the call of results, achieving a balance between long -term precaution and optimism. Financially, in the first quarter of 2025 he showed signs of resilience: revenue remained at $ 1.2 billion, 6% sequentially, while housing acquisitions increased by 4% year -on -year to 3,609. The benefit of the contribution landed to $ 54 million (4.7% margin), slightly lowering the previous year, but the adjusted Ebitda loss reduced to $ 50 million $ 50 million, driven by reduced operating expenses. Fixed costs fell by 33% year -on -year, ranging from $ 58 million to $ 39 million, reflecting the company’s focus on lean operations. Opendoor’s liquidity is still strong, with unrestricted $ 559 million and $ 1 billion in total capital. Its $ 7.9 billion in the non -collected loans capacity of $ 2.3 billion, which is committed, offers significant financial flexibility, reinforced by newly renewed facilities that exceeded at least 2027.

Facility, the orientation of Opendoor Q2 2025 reflects cautious progress. Income from 1.45 to $ 1,525 million and positively adjusted Ebitda of $ 10 to $ 20 million, its first three years. The benefit of the contribution is expected to be between $ 65 and $ 75 million with stable margins. However, domestic acquisitions will fall to ~ 1,700, reflecting broader diffusion and reduction of marketing expenses, measures aimed at protecting capital, but may limit first line growth at the end of the year. However, the rise in post-head shares to Opendoor of 9.37% indicates the trust of investors on their way to profitability. Analysts offered mixed reviews: some, such as Citi, reduced their price goals due to persistent macro headers and a decrease in the actions of 69% year -on -year, while others recognized the company’s cost discipline and strategic adaptability.