What happened
Shares of Opendoor Technologies (NASDAQ: OPEN) have plunged today, down by 11% as of 12:15 p.m. EDT, after the company reported first-quarter earnings. Opendoor went public last year by merging with a special-purpose acquisition company (SPAC), and investors have been shunning anything remotely related to SPACs in recent months.
So what
Revenue in the first quarter was $747 million, which resulted in a net loss of $270 million, or $0.48 per share. The iBuying company, which buys and sells homes, reported a gross profit of $97 million, or a gross margin of 13%. Opendoor purchased a total of 3,594 homes during the quarter and sold 2,462 units. The company exited the quarter with 2,958 homes in inventory valued at a total of $840.6 million.
Image source: Opendoor.
"We are relentless in our pursuit of making it possible to buy, sell, and move at the tap of a button," CEO Eric Wu said in a statement. "We exceeded our guidance for Q1 and are experiencing strong momentum as we look forward to the rest of the year."
Now what
"In the hottest real estate market in a generation, we are seeing record demand and engagement on the Opendoor platform," the company wrote in a letter to shareholders. "Consumer expectations for digital-first experiences have extended to real estate."
Guidance for the second quarter calls for revenue of approximately $1.03 billion to $1.08 billion. Adjusted EBITDA is forecast in the range of negative $5 million to positive $5 million.
10 stocks we like better than Opendoor Technologies Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Opendoor Technologies Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of May 11, 2021
Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Opendoor Technologies Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
