Opendoor Stock Is Beaten Down Now, but It Could 10X

Opendoor (NASDAQ: OPEN), the largest instant buyer of homes in the U.S., went public by merging with a special purpose acquisition company (SPAC) on Dec. 21, 2020. The combined company's stock opened at $31.47 per share on that first day, and it eventually hit an all-time high of $39.24 on Feb. 11, 2021. At its peak, Opendoor's market capitalization reached $20.6 billion -- or 7.6 times its trailing-12-month sales.

At the time, low interest rates, a hot housing market, and Opendoor's ability to streamline the buying and selling process with its "iBuying" model impressed the bulls. Stimulus checks, social media buzz, commision-free trading platforms, and a fear of missing out drove even more retail investors toward speculative growth stocks. Opendoor's debut was also engineered by the "SPAC king" -- Chamath Palihapitiya -- who attracted plenty of followers during the meme stock buying frenzy in 2021.

Image source: Getty Images.

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