Is Opendoor Technologies a Bargain Buy Right Now?
Opendoor Technologies (NASDAQ: OPEN) stock has gained 79% over the past year despite adverse market conditions and tanking sales. Investors have been betting on a comeback, and with the stock's price-to-sales ratio as low as 0.05 last year, it seemed a reasonable opportunity for investors with a high risk tolerance and a long time horizon.
That could still be true even at today's prices, and Opendoor stock is still sporting a cheap price-to-sales ratio of 0.3. But whether or not Opendoor's business can rebound in the long term, it's not likely to happen this year.
Opendoor's revenue dropped 55% in 2023 with the number of homes sold falling 52% to 18,708. The Federal Reserve has indicated that it could cut interest rates as early as next month, and that could spark a recovery in the dismal home-buying industry. But even the rate cuts are uncertain at this point since inflation remains elevated.
Source Fool.com
