Could Buying Opendoor Stock Today Set You Up for Life?

Risk versus reward. That's the sanction of the crippled connected Wall Street. It is simply a important contented to see erstwhile examining Opendoor Technologies (NASDAQ: OPEN) arsenic an concern today. The banal has risen astir 240% implicit the past year, and yet it's down astir 80% from its all-time highs successful 2021.

Is this the motion of an important turnaround for the business, oregon is the hazard inactive excessively precocious for astir investors to fuss with?

The immense bulk of Opendoor's terms summation this twelvemonth came aft the institution announced successful September that it had hired a caller CEO. Kaz Nejatian was brought successful from Shopify astatine a hard clip for Opendoor. In fact, Opendoor's banal terms had declined to the constituent wherever it was a penny banal astatine hazard of being delisted.

Just earlier the CEO transition, the committee of directors was moving connected a reverse banal divided to guarantee the institution remained listed connected the banal exchange. A banal divided changes thing astir the institution itself; it conscionable changes the fig of shares and the percent of the institution each stock represents. A reverse banal divided fundamentally acts to summation the stock price, with each stock representing a larger percent of the company. Companies usually lone enact reverse banal splits erstwhile they are astatine hazard of losing entree to the superior markets.

It is precise atrocious for a nationalist institution to suffer entree to superior markets. That makes it much hard to rise wealth done banal and indebtedness sales. It tin beryllium the commencement of a decease spiral that ends successful bankruptcy. It is indispensable to recognize the severity of the concern astatine Opendoor erstwhile making an concern determination today.

Opendoor has been attempting to found an institutional-level house-flipping operation. It has not been going well, with the institution operating astatine a nonaccomplishment since it went nationalist via a merger with a peculiar intent acquisition institution (SPAC). The losses haven't changed since the caller CEO arrived.

In fact, the institution expects to proceed losing wealth for astatine slightest different year. Investors are excited, however, due to the fact that the caller CEO is making large changes to the business. And the CEO has utilized an important buzzword connected Wall Street today: artificial quality (AI).