Opendoor's stock jumps 30% as investors warm up to new model
Opendoor's stock shot up 30% today, hitting $2.77 per share as investors warmed up to its new business approach and hopes for better profits.
Even with this jump, the stock is still down about 11% over the past year.
Opendoor is switching to a lighter, agent-focused model
Opendoor is switching to a lighter, agent-focused model, which is part of its strategic adjustments as it approaches its Q2 results.
But not everyone's convinced—Citi just cut its price target from $1.40 to $0.80 and kept a neutral stance, pointing out that tough housing market conditions could still be a hurdle.
Opendoor plans reverse stock split, lands $325 million debt deal
To stay on track, Opendoor is planning a reverse stock split and just landed a $325 million debt deal to help refinance what it owes.
About $246 million will go toward paying off notes due in 2026, easing some short-term pressure.
The company's high debt shows it wants to grow fast—but also brings risks if the market stays rough.
Still, recent gains suggest many believe Opendoor might be turning things around.