Opendoor: Headwinds Are Lifting – H1 2024 Will Likely Be Better


  • With the inflation already cooling, mortgage rates declining, and the Fed dovish, it appears that the worst is already behind us, with a near-term Fed pivot more likely than not.
  • Most importantly, OPEN’s old inventory book is mostly sold, with its new purchases likely to generate improved gross and contribution margins by H1’24.
  • Combined with its decent balance sheet and the stock’s upward momentum, it appears that the stock may also break out of the $3 resistance level.
  • However, given the elevated short interest of 13.29%, investors must temper their near-term expectations, since the volatility from aggressive short sellers may temporarily negate the potential upside from these bottom levels.
Fighting against the storm


We previously covered Opendoor Technologies (NASDAQ:NASDAQ:OPEN) in September 2023, discussing its improved prospects then, as the management prudently moderated the acquisition pace in order to maintain its balance sheet health at a time of uncertain macroeconomic outlook.

Combined with the

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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