Plenty of top stocks might be trading down right now, but it's a long time between now and the end of 2022. In this segment of Backstage Pass, recorded on Dec. 22, Fool contributors Deidre Woollard and Rachel Warren share their top stock picks that they're feeling particularly bullish about entering the new year.
10 stocks we like better than Opendoor Technologies Inc.
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Deidre Woollard: I'm going to go with one that I'm more interested in, and that's Opendoor (OPEN -3.59%). I wasn't a fan of this in the beginning as much. I'm not as big on iBuying as some of the other people that cover real estate like [Motley Fool contributor] Matt Frankel, for example.
But I'm starting to learn a little bit more about Opendoor and not just -- I think I like it more, not just because Zillow got out of the business, which obviously gives them an advantage. It's also because I've recently interviewed their CTO [chief technology officer] and co-founder, Ian Wong, and I think I understand a little bit more that iBuying is how they got in, but what they're really trying to do is revolutionize the entire transaction.
I'm not investing in it yet. There's still a lot I'm concerned with. I think they've got too much debt. And I'm worried about the way that they reacted in 2020 with the great shutdown. They shut down operations, they laid off a lot of people.
I think they got back in. But I think everybody got lucky in that scenario because the real estate market roared back so much faster than anybody thought it could. And so it worries me what happens because Opendoor hasn't weathered a real downturn and it's got to happen at some point, even though it's been as of today's NAR existing-home sales, 117 months in a row of median home price gains. [laughs] So wow.
Rachel Warren: Oh, wow.
Deidre Woollard: Yeah. Revenue for Opendoor was $2.3 billion in the third quarter, which is up 91% quarter over quarter. I mean, they're executing really well. I just wonder what's going to happen if/when the housing market shifts.
Rachel Warren: Yeah, definitely one to watch. Mine really fast is one I've become more bullish on and also just started following more closely, and tht would be Airbnb (ABNB 1.17%).
I'm a longtime customer of Airbnb. I often live in Airbnbs as I spend a good part of the year in Italy. But what's interesting is this company only went public a year ago, and it went public during a really rough time for the market. It has really rebounded at an incredible pace, and I think the way that people are using Airbnb's is shifting.
I think people are staying there a lot longer. We saw that in its most recent quarterly report. And as more people are having flexibility with their work-life balance, I think we're going to continue to see more of that. So Airbnb is my pick there.
