Could Opendoor Technologies Be a Millionaire-Maker Stock?

• Opendoor became a alleged meme banal earlier this year.

• It is up 13-fold from the 52-week low.

• The banal terms has pulled backmost since September, and continued gross declines whitethorn spark concerns astir its future.

• 10 stocks we similar amended than Opendoor Technologies ›

Opendoor Technologies (NASDAQ: OPEN) has attracted attraction successful caller months by making a melodramatic recovery. The one-time pandemic banal saw its fortunes reverse successful the 2022 carnivore marketplace and beyond, arsenic it fell to penny-stock status. As precocious arsenic June, it traded arsenic debased arsenic $0.51 per share.

With the banal present supra $7 per share, Opendoor has attracted caller interest. That whitethorn permission investors wondering whether it tin beryllium a summons to millionaire status, oregon is the hype impermanent and fleeting?

Opendoor came astir primitively arsenic a tract that sought to region overmuch of the friction successful buying and selling homes. It would tender currency offers to sellers who wanted retired of their homes, marque immoderate indispensable repairs, and past find a purchaser for those homes.

However, this iBuying exemplary broke down successful 2022 arsenic prices fell and precocious involvement rates depressed sales; Opendoor often had to merchantability homes astatine a loss. That led to the aforementioned diminution successful the banal price. Today, portion Opendoor inactive buys and sells homes, it has evolved into much of a generalized selling level that besides allows for listings by agents.

Still, alternatively than these changes bringing investors backmost to Opendoor stock, it has alternatively benefited from a "meme stock" status. Sites specified arsenic Reddit's /WallStreetBets highlighted the dense abbreviated involvement successful the stock, prompting that site's followers to bid up Opendoor's stock price. Also, hedge money manager Eric Jackson of EMJ Capital stated his content that it could scope $82 per stock and speculated that a $500 per-share terms people was possible.

One mightiness wonderment whether the meme banal buying has tally its course. The banal peaked astatine $10.52 successful September and has steadily dropped. Since achieving that 52-week high, Opendoor banal is down by astir a third.

Additionally, meme banal buying seldom ever brings sustainable banal terms growth. For example, GameStop, arguably the astir palmy meme banal successful history, trades astatine an 80% discount to its 2021 high.

Furthermore, investors hoping to go millionaires from a comparatively tiny concern person already missed the 13-fold summation successful the banal terms from its low.

If 1 bought 10,000 shares astatine the $0.51-per-share low, that shareholder would person invested $5,100 and would clasp $70,500 successful stock, arsenic of Dec. 8. At that point, an capitalist would request to the size of the presumption to summation 14-fold to instrumentality their investment's worth supra $1 million.