OPEN - Opendoor: Path To Breakeven Remains Far A Very Tough Call

2024-06-13 14:15:18 ET

Summary

• Opendoor Technologies Inc. introduced an at-the-market equity program to raise $200 million over the next three years, indicating a need for additional financing.
• Even with improved revenue projections, there is still significant uncertainty over when the business will achieve sustainable, positive free cash flow.
• Some lessons on perspective on why being down 70% from its highs, doesn't mean it's a bargain. Or perhaps it is.

Investment Thesis

Opendoor Technologies Inc. ( OPEN ) is a highly contentious stock. It's a business with a lot of promise. But beyond its promises, what we are left with is a business that is still struggling to deliver positive free cash flow....

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