Yahoo Finance Despite shrinking by US$1.6b in the past week, Opendoor Technologies (NASDAQ:OPEN) shareholders are still up 27% over 1 year
The Opendoor Technologies Inc. (NASDAQ:OPEN) share price has had a bad week, falling 11%. But at least the stock is up over the last year. But to be blunt its return of 27% fall short of what you could have got from an index fund (around 37%).
Although Opendoor Technologies has shed US$1.6b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
View our latest analysis for Opendoor Technologies
Given that Opendoor Technologies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Opendoor Technologies saw its revenue shrink by 44%. The lacklustre gain of 27% over twelve months, is not a bad result given the falling revenue. We'd want to see progress to profitability before getting too interested in this stock.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Opendoor Technologies will earn in the future (free profit forecasts).
A Different Perspective
Opendoor Technologies shareholders have gained 27% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 37%. Shareholders are doubtless excited that the stock price has been doing even better lately, with a gain of 45% in just ninety days. It's worth taking note when returns accelerate, as it can indicate positive change in the underlying business, and winners often keep winning. It's always interesting to track share price performance over the longer term. But to understand Opendoor Technologies better, we need to consider many other factors. Take risks, for example - Opendoor Technologies has 3 warning signs we think you should be aware of.
Opendoor Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
