Dear Opendoor Stock Fan, marking the August 27th calendar
Opendoor (Open) stocks are focusing after the digital real estate platform delayed shareholder votes for the reverse stock split, which had been proposed previously until August 27th.
The management’s decision to postpone shareholder vote comes just after the meme stock rally, which pushed open shares past $1 and restored compliance with NASDAQ’s minimum listing requirements.
Opendoor Stock recovered past $3 last week, but has since cut some of its retail-driven profits, and is now trading for only about $2.
Restoring compliance with NASDAQ’s minimum list requirements is a positive signal of open stock and can lead to forced sales, primarily because it eliminates the immediate risk of repeal.
Additionally, delaying the reverse split will demonstrate management’s confidence that stocks can recover organically, protecting existing shareholders from dilution.
This perceived stability allows open-opens to focus on operational execution and leverage bullish momentum.
Simply put, it serves as a breather for OPENDO stocks that have long struggled with investor trust erosion.
While delaying the reverse stock split is a constructive development, the company doesn’t have a strong basis for justifying its investment, so it’s not a good reason to build a position on Opendoor Stock.
In the most recent quarter reported, online platforms streamlining residential property buying and selling continued to lose money, recording a 2% decline in revenue from the previous year.
While recent profits can entice opportunistic investors, the underlying risk of owning open share remains substantial, given that it is penny stocks and therefore vulnerable to manipulation.
Opendoor Technologies is located in the volatile corner of a market where price shaking is often driven by hype rather than basic.
Finally, investors should stay on the sidelines of OPENDO stocks as this is not a particularly popular name among Wall Street analysts.
The open share consensus rating is currently on “hold,” with the average target of $1.14, indicating an additional 45% potential downside.