Why This Opendoor Technologies Analyst Is Moving To The Sidelines And Downgrading Stock

Shares of Opendoor Technologies Inc OPEN continued to decline in early trading on Monday, after last week’s sell-off.

The company’s 3P ramp is slower than was previously disclosed and the lower-margin cohort continues to exert pressure on margins, according to Oppenheimer.

The Opendoor Technologies Analyst: Jason Helfstein downgraded the rating for Opendoor Technologies to Perform.

The Opendoor Technologies Thesis: Since the rollout of the company’s 3P (which directly connects buyers and sellers of a home) in late 2021, there has been $115 million in sales through Exclusive Listings in Austin, Dallas, and Houston, Helfstein said on a downgrade note.

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“Overall, we do not see investors supporting the stock until 3P becomes the main growth driver of transactions,” the analyst wrote.

“While homes purchased post-2Q22 generated 9.7% contribution margin, they represented just 9% of 4Q rev. and margin will decline as inventory matures,” he added.

OPEN Price Action: Shares of Opendoor Technologies had declined by 3.75% to $1.54 at the time of publication Monday.

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