Categories
Make Money From Home

🏡 Unique Research Shows Opendoor Stock Is Set for a Huge Quarter – InvestorPlace

Just a few weeks ago, I told you that Opendoor (NASDAQ:OPEN) stock had 20X return potential from then-current levels. And I mentioned that it may be one of the biggest investment opportunities I’ve ever come across. The st…….

Just a few weeks ago, I told you that Opendoor (NASDAQ:OPEN) stock had 20X return potential from then-current levels. And I mentioned that it may be one of the biggest investment opportunities I’ve ever come across. The stock was a super compelling one to buy after it collapsed on the heels of disappointing fourth-quarter earnings.

Source: Inspiring / Shutterstock

Well, I really hope you followed that advice and bought the dip. Opendoor stock — a core holding in our Innovation Investor portfolio — has soared as much as 54% since then. It’s been one of the best-performing stocks in the entire market over the past few weeks.

But I’m not updating you on Opendoor stock today to pat myself on the back or applaud you for buying the dip.

Rather, I’m writing to communicate why I believe this big rally in Opendoor stock is far from over.

Indeed, I just came across some unique and important research that underscores that Opendoor’s business is on fire right now. And it indicates the company is going to make a whole bunch of money in the first half of 2022.

As such, I strongly believe Opendoor’s next quarterly numbers will be fantastic. And into and after the first-quarter earnings report, Opendoor stock could soar!

I’m targeting $20 by summer.

Here’s why.

The Most Important Metric for Opendoor Stock

Arguably the most important metric for Opendoor — and any iBuyer, for that matter — is the buy-to-sale premium.

That is, Opendoor is in the business of buying and selling homes. To make money, it needs to buy homes at a certain price and then sell them at a higher price. The bigger the delta between buy and sell price, the more money Opendoor makes per home. And the more money it makes per home, the more profitable the overall business becomes.

Simple, right?

That delta between buy and sell price is called the buy-to-sale premium. If Opendoor buys a home at $100,000 and then sells it for $110,000, its buy-to-sale premium on that home is 10%.

To that extent, that premium is the single biggest driver of profitability of the Opendoor business model.

The bigger the premium, the more money Opendoor is making per home sold and the higher its profit margins. The key to Opendoor becoming enormously profitable, then, is to couple increasing scale with rising buy-to-sale premiums.

Well, we already know that Opendoor …….

Source: https://investorplace.com/hypergrowthinvesting/2022/04/unique-research-shows-opendoor-stock-is-set-for-a-huge-quarter/

Leave a Reply

Your email address will not be published.