This Industry Leader Is Planning a Reverse Split -- Should You Invest?
It wasn't too long ago that Opendoor Technologies (NASDAQ: OPEN) was an extremely popular momentum stock, with a market cap of more than $20 billion at one point. The clear leader in the iBuying industry, Opendoor went public as part of the SPAC boom. In fact, the hype surrounding Opendoor's SPAC merger announcement in late 2020 is often credited with starting the surge in blank-check companies we saw in the pandemic years.These days, it's a different story. Opendoor is trading firmly in penny stock territory, with a share price well below $1. The company has a market cap of about $413 million as of this writing, a minuscule valuation for a business with more than $5 billion in revenue over the past year. It's clear that investors don't have a lot of faith in the model right now.Image source: Getty Images.Continue reading
It wasn't too long ago that Opendoor Technologies (NASDAQ: OPEN) was an extremely popular momentum stock, with a market cap of more than $20 billion at one point. The clear leader in the iBuying industry, Opendoor went public as part of the SPAC boom. In fact, the hype surrounding Opendoor's SPAC merger announcement in late 2020 is often credited with starting the surge in blank-check companies we saw in the pandemic years.
These days, it's a different story. Opendoor is trading firmly in penny stock territory, with a share price well below $1. The company has a market cap of about $413 million as of this writing, a minuscule valuation for a business with more than $5 billion in revenue over the past year. It's clear that investors don't have a lot of faith in the model right now.
Image source: Getty Images.
