Opendoor’s stock has surged over 1,300% in the last five months, with a low valuation and turnaround efforts driving bullish sentiment. Despite comparisons to meme stocks, growth potential remains high.

Opendoor faced delisting in June at $0.51 per share due to high mortgage rates. Now, trading at $7, the stock’s dramatic rise prompts speculation on future gains and millionaire-making possibilities.

Opendoor’s iBuyer model uses AI algorithms to offer instant cash for homes, but struggles in high-interest environments. Growth surged in 2021 post-pandemic, but slowed due to rising rates, impacting margins and earnings.

Opendoor became the top iBuyer after competitors Zillow and Redfin left the market in 2022. However, industry slowdowns and a shrinking core market pose challenges for future growth.

Despite the Federal Reserve’s rate cuts, mortgage rates remain high, impacting the housing market’s recovery and Opendoor’s iBuying business. Market stabilization remains uncertain as rates are tightly linked to other factors.

Opendoor’s stock rise was driven by aggressive rate cut expectations, retail investor interest, and becoming a meme stock. Hiring a new CEO, board reshuffling, and institutional support signaled a serious effort to stabilize the struggling business.

Opendoor’s shift towards listing partnerships and AI algorithm upgrades aims to reduce iBuying dependence and enhance margins. The company’s evolution into a diversified AI and software firm attracts investor interest.

Analysts expect Opendoor’s revenue to grow at an 8% CAGR from 2024 to 2027, with an enterprise value of $6 billion trading at just 1.6 times next year’s sales, presenting an undervalued opportunity.

Opendoor’s potential future growth relies on a recovering housing market, ecosystem expansion, and economies of scale. Matching analyst expectations could lead to significant stock growth over the next decade.

Read more at Yahoo Finance: Is Opendoor Stock a Millionaire Maker?