Opendoor Technologies Inc (NASDAQ:OPEN) stock is trading lower Tuesday afternoon as the investor debate continues over the company's path to profitability. Here’s what investors need to know.
What To Know: The move lower comes after Opendoor CEO Kaz Nejatian announced new buyer perks last week, including a seven-day “home test drive” and a 100-day home warranty.
Hedge fund manager George Noble sharply criticized the announcement, calling it a “nothing burger” and questioning the company’s fundamental business model.
Noble, who previously labeled Opendoor a “total clown show,” argued the company suffers from “atrocious unit economics” and has lost money every year since its inception. Other critics, such as Citron Research and Martin Shkreli, have also voiced doubts about the iBuyer’s viability amid the stock’s retail-driven resurgence.
This skepticism persists despite the stock rallying over 600% off the lows from late June. Last week, the stock briefly climbed after receiving preliminary court approval for a settlement in a derivatives lawsuit.
Meanwhile, bullish investor Eric Jackson has offered a counter-narrative, telling Business Insider that Opendoor is key to thawing the frozen housing market. He believes its model provides vital, fast liquidity to sellers and will eventually lower transaction costs, ultimately capturing 10% market share and enticing younger buyers.
Benzinga Edge Rankings: According to Benzinga Edge rankings, Opendoor stock boasts a very high Momentum score of 99.32, while its Growth score sits at a low 10.20.
OPEN Price Action: Opendoor Technologies shares were down 2.32% at $9.06 at the time of publication on Tuesday, according to Benzinga Pro. The stock is trading near its 52-week high of $10.87.
Opendoor stock is trading well above its 50-day moving average of $5.50, indicating a strong upward trend over the medium term. However, the recent price action suggests potential resistance near the $9.30 level, with support likely found around the 50-day moving average.
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How To Buy OPEN Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Opendoor Technologies’ case, it is in the Real Estate sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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