Opendoor stock has fallen 48 percent from its recent peak. The stock fell 24 percent in March at a time when the S&P 500 rose 4.2 percent. OPEN stock is down 3.2 percent so far in April, while the S&P 500 is up 3.9 percent.
The decline in Opendoor stock can be attributed to lackluster earnings. In the fourth quarter of 2020, the revenue fell 80 percent YoY to $248.9 million. That still exceeded the consensus estimate by more than $5 million. However, the EPS of -$0.49 missed the consensus estimate at -$0.10. The company’s full-year revenue also fell from $4.8 billion in 2019 to $2.6 billion. The report revealed Opendoor’s slowing growth in 2020 amid the COVID-19 pandemic. As a result, investors soured on OPEN stock.
Besides the poorly received earnings, Palihapitiya-linked stocks have generally been under pressure in recent months, which might explain the decline in OPEN stock. For example, Virgin Galactic (SPCE) and Clover Health (CLOV) stocks are each down 53 percent from their peaks. Meanwhile, IPOD, SoFi IPOE, and IPOF are down 34 percent, 37 percent, and 38 percent from their peaks, respectively. The broad selling pressure in Palihapitiya stocks can be linked to Hindenburg Research’s allegations that the SPAC king misled investors in the Clover deal.
View more information: https://marketrealist.com/p/is-opendoor-open-a-good-stock-to-buy-now/