Opendoor Technologies’ fair value estimate has been revised downward to $1.17, primarily reflecting reduced analyst expectations for both revenue growth and earnings, as evidenced by lower consensus forecasts and a declining future P/E multiple.
What's in the News
- Opendoor launched Cash Plus, allowing home sellers to unlock most of their equity upfront while still marketing their home via agent partners, initially in three markets with plans for broader rollout.
- The company introduced the Opendoor Key Agent app, enabling agents to secure cash offers for clients quickly and streamline home assessment processes, currently available via invitation for iPhone users.
- Opendoor expanded its Key Agent platform with Key Connections, directly connecting partner agents with motivated sellers and broadening sales channel reach and revenue potential.
- Received a Nasdaq notice for non-compliance with the $1.00 minimum bid price requirement, initiating a 180-day period to regain compliance, with a potential additional 180-day extension and the option to enact a reverse stock split.
- Completed $325 million in private placements via convertible senior notes due 2026 and 2030, with the 2030 notes convertible at a premium and featuring a 7% annual coupon, and guided Q2 2025 revenue at $1.45–$1.525 billion with contribution profit of $65–$75 million.
Valuation Changes
Summary of Valuation Changes for Opendoor Technologies
- The Consensus Analyst Price Target has significantly fallen from $1.37 to $1.17.
- The Consensus Revenue Growth forecasts for Opendoor Technologies has significantly fallen from 11.3% per annum to 8.9% per annum.
- The Future P/E for Opendoor Technologies has significantly fallen from 4.30x to 3.71x.
Disclaimer
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