Opendoor Technologies Inc. (OPEN): A Bull Case Theory

We came across a bullish thesis on Opendoor Technologies Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on OPEN. .70Opendoor Technologies Inc.'s share was trading at $7.70 as of November 28th.

Opendoor Technologies Inc. operates a digital platform for residential real estate transactions in the United States. OPEN is undergoing a fundamental transformation as CEO Kaz Nejatian “refounds” the business into a software- and AI-driven platform. After rapid expansion and painful corrections driven by rising rates and inventory losses, Opendoor is repositioning itself as a market maker focused on tight spreads, proprietary AI for inspections, and a frictionless digital checkout.

Early signs of this shift emerged in Q3 2025: weekly acquisitions doubled within seven weeks of Nejatian’s leadership, and new tools—including AI-powered scoping, a builder trade-in widget and support for stablecoin payments—signal ambitions to tokenize and digitize the real-estate transaction.

The quarter’s financial results reflect the transition, with revenue falling to $915 million and margins pressured by clearing high-cost legacy inventory, but operating expenses dropping 41% as the company streamlines to roughly 1,100 employees. Inventory turnover improved as sales outpaced purchases, liquidity remains supported by $1.45 billion in cash and restricted cash, and management aims to rebuild inventory for 2026 while driving toward profitability. Opendoor is also reshaping its capital structure through warrant dividends, convertible-note repurchases and equity issuance, steps that reduce leverage but increase dilution risk.

In a housing market defined by high mortgage rates and constrained supply, the company sees both headwinds and opportunity, believing that AI-driven pricing, operational efficiency and integrated services can restore margins to a long-term 5–7% contribution target. With competitors like Zillow shifting to capital-light models, Opendoor’s differentiated full-stack approach—spanning buying, selling, financing and crypto-enabled settlement—could create a scalable platform capturing more of the transaction value chain. Execution, however, remains critical given macro uncertainty, regulatory complexity and the inherent risks of carrying inventory.

Previously we covered a bullish thesis on Opendoor Technologies Inc. (OPEN) by LongYield in May 2025, which highlighted disciplined spreads, agent partnerships, and cost reductions supporting a path to profitability. The company’s stock price has appreciated approximately by 783.02% since our coverage. This is because the thesis played out. The thesis still stands as execution remains strong. LongYield shares a similar view but emphasizes Opendoor’s AI-driven transformation.

Opendoor Technologies Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held OPEN at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of OPEN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.