In 2025, Opendoor Technologies' (OPEN 8.16%) stock traded up roughly 264%, and was up as much as 580% in mid-September. That's an incredible return, but one that would have been super risky for anyone who started the year with the idea that Opendoor could be a solid turnaround stock last year. Just the prior year, it has lost 64% of its value, and by the middle of 2024, the stock was trading as low as $0.51 per share.
Around that low point, some intrepid retail investors relied on the power of social media camaraderie to push the stock higher with some meme encouragement. However, even at the current price, Opendoor stock still trades around 80% off its all-time early-2021 high. It's also still quite cheap, trading at 1.1 times trailing 12-month sales.
From here, can Opendoor become a 10-bagger stock?
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Same climate, new direction
Opendoor is one of several companies that have tried to disrupt traditional real estate in the digital era. It's one of the few iBuying companies that remain after others closed down their businesses in the pressured real estate climate. The company's main business is buying homes in bulk, making necessary renovations, and reselling them. Its ideal model is using its own marketplace for these transactions, but it has forged new relationships with outside partners to move inventory.
Recent performance has been dismal in light of high mortgage rates and poor real estate trends, and when retail investors banded together to make something happen, the CEO was ousted, and a new leader has been brought in to shake things up. CEO Kaz Nejatian, who came from Shopify, has a new model in mind, where volume is prized over spread. He is also cleaning up the corporate side of things, adding artificial intelligence (AI) software to take care of tedious and repetitive tasks.
Can this new model lead to stronger results? It's a definite possibility, but far from a guarantee. Opendoor is also still operating under intense pressure, so the results may not be significant until the real estate environment changes.
NASDAQ: OPEN
Key Data Points
Can Opendoor stock become a 10-bagger?
Opendoor stock's 2025 ascent brought it back from the brink of disaster, and although it's cheap today, it's not ridiculously cheap; it may be fairly priced for where it's holding right now. For it to become a 10-bagger from this point, it's likely to need a lot more than a social-media-driven frenzy.
Over many years, if the real estate market improves, there is certainly a chance that the stock could soar. Opendoor has only $4.7 billion in trailing 12-month revenue, and if it really starts to sell, it's not hard to imagine revenue growing 10 times to $47 billion. Homes are high-cost assets, and in a thriving real estate market, that's a reachable goal. Keeping the price-to-sales ratio constant, the stock would follow.
However, it's a risky bet to take right now, and investors should only invest money they don't need in the near future or can afford to lose.
