In 2021 and 2022, the hypergrowth technology bubble popped. Last year, it started to reinflate. Embodying this trend is Opendoor Technologies (NASDAQ: OPEN), a digital platform for residential real estate. The company, which went public through a special purpose acquisition company (SPAC) in 2020, saw its shares collapse more than 97% from their all-time high in 2021.

After starting 2023 trading near just $1 per share, the stock surged 286% last year. A lot of people have bet on Opendoor's comeback, but smart investors know you don't buy a stock simply because it's going up. Here are three things you need to know before buying this real estate technology stock in 2024.

While the company has long hyped its technology, Opendoor's business model does not require any revolutionary innovation. The company buys homes from individuals -- collecting a 5% service fee in the process -- and then sells those same homes to other buyers. This kind of home flipping has been happening for decades, but Opendoor is doing it online and at a massive scale. In 2021 and 2022, the company purchased around 35,000 homes annually in the United States.

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Source Fool.com