Evaluating the Potential of OpenDoor ($OPEN): A Deep Dive into Market Opportunities

Eric Jackson’s valuation calculation suggests that the market is still underestimating the potential of $OPEN. Based solely on their iBuying business, excluding elements such as mortgage services, artificial intelligence advantages, and international expansion, the theoretical stock price could soar above $315!

🏡 Market Size Comparison

For 2024, the forecast for US existing home sales stands at approximately 4,000,000 homes. Currently, OPEN has sold 135,000 homes, giving them a mere 0.3% market share.

Despite this small market share, OPEN has achieved:

• 💰 Revenue: $5.2 billion
• 💵 Gross Profit: $400 million

📈 Market Recovery Projections

Assuming the market returns to normal with annual transactions reaching 5 million homes, if OPEN captures a 10% market share, they would sell 500,000 homes each year, leading to:

• 🏠 Revenue per home: approximately $385,000
• 🏠 Gross profit per home: approximately $30,000
• 📊 Gross profit margin: approximately 7.7%
• ➡️ Total Revenue: $192 billion
• ➡️ Total Gross Profit: $15 billion

💡 Valuation Calculation

Considering the current multiples, Carvana (CVNA) has a market value-to-gross profit ratio of about 15.42x. Thus, if we apply this ratio to OPEN’s gross profit:

• $15 billion (Gross Profit) × 15.42 = $228 billion (Market Value)
• 📌 Divided by 723 million shares outstanding gives us approximately $315 per share.

🚀 The Potential Is Vast!

This valuation reflects only the iBuying aspect. Not yet included are:

• Mortgage services
• AI-driven enhancements
• International market expansion

Eric Jackson emphasizes that $OPEN is not merely a ‘meme stock;’ rather, it’s a platform with cult-like loyalty, displaying immense potential for compounded growth.

📊 Short-Term Data Update

• This quarter’s revenue guidance exceeds expectations by $26 million.
• Current revenue stands at $764.4 million.
• Expected revenue is roughly $738.4 million.
• Target revenue is $837.5 million, a difference of $73.1 million.
• Current inventory: 199 homes at an average price of $366,000.
• Just 10 days remain before the quarter ends.

✨ Bottom Line Conclusion

If OPEN can secure a significant share of the US real estate market and maintain a valuation comparable to its peers, the potential stock price could multiply significantly from today’s figures!

Stay tuned for future updates, and feel free to share your thoughts on where you see $OPEN heading this year! #Investing #StockMarket #RealEstate #OPEN