Opendoor Technologies Inc (OPEN) Options

Startups always issue additional shares to employees as compensation to keep their overhead down and to keep essential employees. Quite often these shares are in the form of stock options which allow the employee to sell their shares at the current price as they vest quarterly. In the case of OPEN most, if not all, of these shares have been issued at a value much higher than the current price. When the SPAC merger was completed and OPEN valued at $10 a share, there were 480,000,000 shares outstanding or a valuation of $4.8B. Today there are over 715,000,000 shares which is not an unusual jump in outstanding shares over nearly 4 years for a startup.

That said, it will be about 50% more difficult for OPEN to reach $10 a share as there are roughly 50% more shares to move. Also, on average we can expect an additional 15MM shares to vest every quarter. That's about 2% additional shares each quarter. At this pace, by the end of 2026 there will be almost 850MM shares outstanding. If there is a recession between now and then, all bets are off as OPEN will still have to move homes quickly to keep up with debt payments and may well have to dump homes at a loss.

Two other companies Zillow and Redfin followed OPEN into the iBuying market in 2020 when it appeared that iBuying would take over a considerable portion of the market. Zillow got out almost immediately, (2021) when it was clear their algos could not price homes properly. Redfin has remained in the market and is getting crushed. Both RDFN and OPEN have market values in the $1+B range while Zillow is valued at over $11B. Just looking at RDFN debt to equity ratio, there is no value in RDFN. I don't see how they avoid bankruptcy in this difficult market.

The last and maybe the most concerning issue for OPEN is that their profit model is built on being able to slightly undercut the traditional real estate sales model. Since NAR lost the class action suit it appears that buy side realty organizations may no longer expect sellers to pay their 3% commission and buyers will begin to negotiate a lower cost. In fact a reasonably experienced buyer will no longer need a buy side agent and the sell side agent will no longer be able to take that commission as their own.

As I said the other day, I wouldn't say OPEN will fail but I see a very bumpy road ahead for investors. Traders may actually do well as volatility is their friend.

OPEN destined for $10+

OPEN may still pull out of this but revenue is down sharply from 2022 and the cost to hold over $2-2.5B in homes in this higher interest rate market is hurting any chance they're going to be profitable. I understand they're streamlining operationally but it doesn't appear this is enough and it's not clear the new operational model will scale efficiently as they grow their market count.

BITCOIN no
OPEN yes
OPEN real property

Jan 20, institutional coming

ducks are getting in order. next 1000%+ back to 30s

what happened here suggests a dysfunctional management operating erratically.

rate cut + strong earning = ballistic OPEN Z

OPEN
before market close ER-day

A door just OPEN.....ed

open at 3+ or commit for BK this coming Friday

Apparently OPEN did earning beat for last four consecutive Q, yet share price showed no nudge . 88M+ short

OPEN or closedoor
anything new this earning season behind this closed-door

Z 61-62, OPEN 1.7-1.8

OPEN............................https://stockcharts.com/h-sc/ui?s=OPEN&p=W&b=5&g=0&id=p86431144783

OPEN under $3

Expecting this to go up once Fed cuts interest rates.

OPEN..........................https://stockcharts.com/h-sc/ui?s=OPEN&p=W&b=5&g=0&id=p86431144783

OPEN...........................https://stockcharts.com/h-sc/ui?s=OPEN&p=W&b=5&g=0&id=p86431144783

OPEN......................https://stockcharts.com/h-sc/ui?s=OPEN&p=W&b=5&g=0&id=p86431144783

OPEN...........................................https://stockcharts.com/h-sc/ui?s=OPEN&p=W&b=5&g=0&id=p86431144783

OPEN
Opendoor Technologies Inc
2.87
-0.04 (-1.37%)
Volume: 17,125,298
Day Range: 2.81 - 2.98
Last Trade Time: 6:03:36 PM EDT
Delayed by 15 minutes

I AM READING FINVIZ LOT OF INSIDER SALES

https://finviz.com/quote.ashx?t=OPEN&ty=c&ta=1&p=d

FORM TYPE RECEIVED PERIOD END DATE REPORT
4 02/02/2024 02/01/2024 PDFRTFHTMLXLS

OPEN
Opendoor Technologies Inc
3.4503
-0.0797 (-2.26%)
Volume: 20,957,753
Day Range: 3.251 - 3.505
Last Trade Time: 7:59:43 PM EST

https://www.otcmarkets.com/stock/OPEN/quote

https://www.otcmarkets.com/stock/OPEN/security

IN THE MIX OF THINGS AI

OPEN
Opendoor Technologies Inc
3.4503
-0.0797 (-2.26%)
Volume: 20,957,753
Day Range: 3.251 - 3.505
Last Trade Time: 7:59:43 PM EST

OPEN
Opendoor Technologies Inc
3.4503
-0.0797 (-2.26%)
Volume: 20,957,753
Day Range: 3.251 - 3.505
Last Trade Time: 7:59:43 PM EST

OPEN a solid pickup at $2

mb

$OPEN
https://x.com/hannahadad8890/status/1729441791382900797?s=61

$OPEN
https://x.com/hannahadad8890/status/1728794946851737712?s=61

Anybody here?

I like their partnership with Zillow but I've concerns with the finding against NAR which may lower commission rates at traditional brokerages and also squeeze margins at OPEN. While I don't own this any longer I do hope they're successful as the industry needs a complete remake.

Anybody here? Hellooooooo.

Liking my 1500 shares that I bought $1.64.. Lets go OPEN!!!

was hoping for more, next. lol

its lonely here. is there anyone that wants to make money with me on this one?

super weeeeee!!!!!

here we gooooo!!

grabbed a few today.

Opendoor Technologies Inc NASDAQ: OPEN

GoSymbol lookup
Real Estate : Real Estate Management & Development | Small Cap ValueCompany profile
Opendoor Technologies Inc. is an e-commerce platform for residential real estate transactions. The Company, by leveraging software, data science, product design and operations, it manages a marketplace for residential real estate that offers buyers and sellers an enhanced experience. Its products include a first-party (1P) product and a third-party (3P) product. The 1P product enables the sellers to sell their home directly to customers and the Company resell the home to a home buyer. By selling to Opendoor, homeowners can avoid the stress of open houses, home repairs, overlapping mortgages and the uncertainty that can come with listing a home on the open market. The 3P product offering connects the home seller with either an institutional or retail buyer, facilitating the transaction without customer taking ownership of the home. Sellers can request an offer from its network of buyers, while also receiving an Opendoor offer. It operates in approximately 44 markets across the country.
Earnings spotlight: Thursday, August 3 - Apple (AAPL), Amazon (AMZN), Amgen (AMGN), Anheuser-Busch InBev (BUD), ConocoPhillips (COP), Booking Holdings (BKNG), Opendoor Technologies (OPEN), and Wayfair (W). Seeking Alpha analyst Jaime Galvin said "Amazon's crown jewel, AWS, continued to shine, but growth and margins now look to be decelerating sharply."

OPEN............................https://stockcharts.com/h-sc/ui?s=OPEN&p=W&b=5&g=0&id=p86431144783

To the moon!

Dip and rip

Yes sir it hit it On to five bucks
Patience pays

Good Afternoon $OPEN

Settin up for three bucks

Looking good folks

Probably a good idea. From the tone of the Q1 conference call it sounds like they've got one or maybe two more tough quarters while they sell off old inventory. All new inventory has been profitable.