Digital real estate platform provider Opendoor Technologies (OPEN) reports its Q1 earnings this week – May 7. Its share price has slipped 12% this year, hit by property buyer and seller concerns over high interest and mortgage rates, elevated house prices, lower inventory and general economic uncertainty.
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Forget margin or options. Here's how the pros trade OPENAccording to TipRanks’ Options Tool, options traders expect about an 8.77% move in either direction in OPEN stock in reaction to its Q1 results.
What Wall Street Expects
Wall Street expects OPEN to post an EPS of -$0.09, which would be an improvement on the -$0.12 it reported in the same period last year. It is tipped to report revenues of around $666 million, down from the $1.15 billion it reported last year.
Key Issues Ahead of Earnings
In Q4, OPEN said it had purchased 1,706 homes, a 46% increase quarter-over-quarter from 1,169 in Q3. It also hailed the use of AI including a self-assessment valuation app which improved process times.
However, it noted that Q4 revenue was $736 million, a 20% quarter-over-quarter decline, and that weekly acquisition volumes were at or below the low end of its targets. It also highlighted its exposure to economic downturns.
Many of these themes are likely to be repeated in Q1, especially with the Iran war knocking hopes of a continued downward direction for interest rates.
But Alliance Global Partners analyst Gaurav Mehta is bullish on the stock. He recently cited Opendoor’s goal of reaching adjusted net income breakeven over the 12 months leading into the end of this year. Mehta set a price target of $8, predicting about 44% upside in the months ahead. The three-star analyst also contended that Opendoor could expand its market share and product offerings to deliver growth to investors.
Is OPEN a Good Stock to Buy Now?
On TipRanks, OPEN has a Hold consensus based on 2 Buy, 2 Hold and 1 Sell ratings. Its highest price target is $8. OPEN stock’s consensus price target is $6, implying a 16.96% upside.
