Why Opendoor Stock Soared 91% in May
Share of Opendoor Technologies (NASDAQ: OPEN) stock rose 91% in May, according to data provided by S&P Global Market Intelligence. It released an earnings report that was better than expected, and the valuation had dropped considerably.
Opendoor's business has been absolutely crushed by rising interest rates. It operates a tech-powered home-flipping model, which as a business looks like the future of home buying. Investors were excited by the company's concept when it went public via special purpose acquisition company (SPAC) in 2020, but its stock has tanked as macroeconomic factors exacerbate internal problems.
When Opendoor first came onto the scene, it was a typical growth company, with a promising, disruptive idea, high growth rates, and mounting losses. Investors could handle that in a strong bull market when it was easy to borrow money to develop a business.
Source Fool.com
