Online home buying and seller Opendoor Technologies Inc (NASDAQ:OPEN) could gain new investors or strengthen its meme stock status when the company reports second-quarter financial results after market close Tuesday.
OPEN stock is surging on strong momentum. Track live prices here.
Here are the earnings estimates from analysts and key items to watch.
Earnings Estimates: Analysts expect Opendoor to report second-quarter revenue of $1.50 billion, down from $1.51 billion in last year's second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in six straight quarters and in nine of the last 10 quarters overall.
Analysts expect the company to report a loss of one cent per share for earnings, an improvement from a loss of four cents per share in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in nine straight quarters.
Guidance from Opendoor earlier this year called for second-quarter revenue to be in a range of $1.45 billion to $1.525 billion.
Key Items to Watch: Opendoor has seen a sharp increase in interest in the stock and has been linked to meme stocks thanks to its high volatility in recent months.
Hedge fund manager Eric Jackson helped boost interest in the stock on social media and in interviews, highlighting the long-term opportunity for the company.
"I'm in this for the long run. I'm not here to pump up a stock and jump out of it. I've never done that," Jackson told Business Insider.
Jackson has brushed off Opendoor being a meme stock and instead said investors should focus on the legitimate turnaround story of the home-buying company.
The hedge fund manager highlighted Opendoor's cost-cutting efforts, the company's leadership in the iBuying space that has been exited by Zillow and Redfin and the potential for a housing market recovery.
Opendoor stock traded higher Monday on the news that the company has secured compliance with rules to remain listed on the Nasdaq exchange. The company also said it will no longer conduct a reverse stock split.
In the first quarter, Opendoor had revenue of $1.15 billion and ended the home with 1,051 homes under contract for purchase. The company's inventory balance at the end of the first quarter was $2.4 billion, representing 7,080 homes.
Investors and analysts will likely be looking for strong financials and figures that beat estimates to carry the momentum from being a meme stock forward.
Short interest in Opendoor is 22.1% of the float according to data from Benzinga Pro.
OPEN Price Action: Opendoor stock is up 15.49% to $2.43 on Monday versus a 52-week trading range of 51 cents to $4.97.
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Photo: Courtesy Opendoor
