Opendoor Technologies (OPEN) runs a digital platform for residential real estate in the United States. Consumers may use its platform to purchase and sell homes online.
Opendoor recently announced strong fourth-quarter earnings results. The revenues increased by 1,435% year-over-year to $3.8 billion. Meanwhile, the adjusted net loss was $80 million, compared to $41 million in the year-ago quarter.
For the first quarter of 2022, the company expects revenues of $4.1 billion – $4.3 billion, representing a 462% rise year-over-year.
Let’s look at the risk factors for Opendoor Technologies, using the new Tipranks Risk Factors tool.
Risk Factors
Opendoor’s main risk category is Finance & Corporate, which accounts for 19 of the total 54 risks identified. The next major Opendoor risk comes under the Tech & Innovation category, which accounts for 9 risks.
In its recent report, the organization has warned the investors about two new risks.
Opendoor’s first new risk factor is in the Ability to Sell category. The company said, “Failures by our perceived competitors may adversely impact Opendoor.”
Given Opendoor’s unique business strategy and lack of record as a public company, any failure of its rivals might have a negative influence on investor perceptions of the digital home purchase market as a whole. Opendoor warns investors that, regardless of whether such failures are directly related to Opendoor’s business, they might have a detrimental impact on the company’s stock price and ability to raise funds.
The second risk has been added to the Macro & Political category. The company said, “Our business is subject to the risks of international operations.”
Opendoor advises that some of the company’s staff is located in Canada and India. As a result, the firm needs to comply with applicable domestic and international regulations, such as labor laws, anti-corruption legislation, and tax laws, among others, raising the cost of doing business. Furthermore, any infringement on these regulations, according to Opendoor, might harm the company’s brand, foreign expansion attempts, and financial operations.
Wall Street’s Take
Turning to Wall Street, the stock has a Moderate Buy consensus rating, based on 4 Buys, 1 Hold, and 1 Sell. The average OPEN price target of $18.00 implies 115.6% upside potential to current levels.
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