Opendoor Technologies Inc. (OPEN): A Bull Case Theory

We came crossed a bullish thesis connected Opendoor Technologies Inc. connected LongYield’s Substack. In this article, we volition summarize the bulls’ thesis connected OPEN. .70Opendoor Technologies Inc.'s stock was trading astatine $7.70 arsenic of November 28th.

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Opendoor Technologies Inc. operates a integer level for residential existent property transactions successful the United States. OPEN is undergoing a cardinal translation arsenic CEO Kaz Nejatian “refounds” the concern into a software- and AI-driven platform. After accelerated enlargement and achy corrections driven by rising rates and inventory losses, Opendoor is repositioning itself arsenic a marketplace shaper focused connected choky spreads, proprietary AI for inspections, and a frictionless integer checkout.

Early signs of this displacement emerged successful Q3 2025: play acquisitions doubled wrong 7 weeks of Nejatian’s leadership, and caller tools—including AI-powered scoping, a builder trade-in widget and enactment for stablecoin payments—signal ambitions to tokenize and digitize the real-estate transaction.

The quarter’s fiscal results bespeak the transition, with gross falling to $915 cardinal and margins pressured by clearing high-cost bequest inventory, but operating expenses dropping 41% arsenic the institution streamlines to astir 1,100 employees. Inventory turnover improved arsenic income outpaced purchases, liquidity remains supported by $1.45 cardinal successful currency and restricted cash, and absorption aims to rebuild inventory for 2026 portion driving toward profitability. Opendoor is besides reshaping its superior operation done warrant dividends, convertible-note repurchases and equity issuance, steps that trim leverage but summation dilution risk.

In a lodging marketplace defined by precocious owe rates and constrained supply, the institution sees some headwinds and opportunity, believing that AI-driven pricing, operational ratio and integrated services tin reconstruct margins to a semipermanent 5–7% publication target. With competitors similar Zillow shifting to capital-light models, Opendoor’s differentiated full-stack approach—spanning buying, selling, financing and crypto-enabled settlement—could make a scalable level capturing much of the transaction worth chain. Execution, however, remains captious fixed macro uncertainty, regulatory complexity and the inherent risks of carrying inventory.

Previously we covered a bullish thesis connected Opendoor Technologies Inc. (OPEN) by LongYield successful May 2025, which highlighted disciplined spreads, cause partnerships, and outgo reductions supporting a way to profitability. The company’s banal terms has appreciated astir by 783.02% since our coverage. This is due to the fact that the thesis played out. The thesis inactive stands arsenic execution remains strong. LongYield shares a akin presumption but emphasizes Opendoor’s AI-driven transformation.