Opendoor Technologies Inc

Intel CEO Lip-Bu Tan bought about $10 million worth of INTC shares earlier this month at $95 a share, the same price at which Intel had just priced a $20 billion secondary offering days earlier. Intel's Q2 revenue rose 25% year over year, a massive acceleration from Q1's 7% growth, with margins jumping to about 42% and AI segment growing 59% while foundry revenue rose 31%. Wedbush analyst Matt Bryson said Intel's advanced packaging technology, EMIB, could put the company in a position to win TPU orders from Google, which would be the first real signal that an outside chip designer trusts Intel's manufacturing enough to bet its own products on it. Bears point out that server revenue growth is related to price, not volumes, with average selling prices rising 48% while unit volumes grew only about 9%, and client computing segment prices up 27% while volumes were down 8%. A major chunk of Foundry revenue in the most recent quarter was due to Intel manufacturing chips for itself, with external customer revenue coming in at only about $293 million and the segment losing approximately $2.1 billion in operating income for the quarter. Intel has a non-GAAP trailing P/E of 88.70 against a sector median of 25.65, a 246% premium, and forward P/E of 63.91 versus 23.77, a 169% premium, while EV/Sales runs 8.64 forward against 3.64 for the sector, a 138% premium. Opendoor Technologies CEO Kaz Nejatian recently bought 27,625 shares of the company after Opendoor's Q2 report missed on both revenue and earnings, with the GAAP loss per share coming in wider than expected and adjusted EBITDA flipping negative. The company sold 2,339 homes during the quarter, short of consensus and sharply lower than the 4,299 homes sold in the same period last year, but management gave upbeat forward guidance, pointing to plans to gain licenses in more states. Bulls argue the stock could rebound on reduced competition, since Zillow exited the iBuying business back in 2021, leaving Opendoor as one of the few major players still standing in the space, and management expects adjusted net income to turn positive by the end of this year, guiding for Q3 revenue growth of at least 20% year over year. On a price-to-sales basis, the stock looks cheap at 0.91 versus a sector median of 4.91, an 81% discount, and net long debt to assets is just 5.91% against a 39.94% sector median, but price-to-book paints the most cautionary picture, with Opendoor trading at 3.56 times book value versus a sector median of 1.67, a 114% premium.

Opendoor Technologies shares fell 19% in July as the market worried about high interest rates and the company's ability to rebound, with the stock sliding further after its second-quarter earnings report on August 4. Revenue of $883 million missed Wall Street's $905.9 million estimate, and management guided for 20% year-over-year growth, below the 25% analysts expected. Despite the miss, CEO Kaz Nejatian's strategy shift toward volume over spread showed momentum: revenue rose 23% quarter over quarter, gross margin improved from 8.2% to 9.7% year over year even as gross profit dropped from $128 million to $86 million, and home acquisitions jumped 77% from the prior quarter to 4,378 homes. The company also reduced operations expense per acquisition close from $5,000 to $3,000 and cut the share of homes on the market for 120 days or more to 9%, well below the 27% industry average. Management said it is already profitable on an adjusted EBITDA basis on a 12-month go-forward view and expects to reach adjusted net income profitability by year-end.

Opendoor Technologies Inc. reported a second-quarter net loss of $162 million, or $0.17 per share, compared with a loss of $29 million, or $0.04 per share, in the same period last year. Revenue fell 43.7% to $883 million from $1.567 billion a year earlier.

Digital Realty Trust and Equinix were among the top large-cap real estate gainers this week as the sector benefited from a rotation out of technology stocks and reached a new 52-week high. The Real Estate Select Sector SPDR Fund hit a 52-week high after upbeat housing data, with the S&P 500 Real Estate Index Sector rising 1.35% to 293.1 points. Digital Realty Trust surged 14.49% to $199.08 after posting stronger-than-expected second-quarter earnings and raising its full-year guidance, while Equinix advanced 6.30% to $1,084.24. Among large-cap losers, KE Holdings fell 8.68% to $15.89 and CoStar Group dropped 7.12% to $27.66. In the mid-cap segment, Opendoor Technologies was the biggest loser with a 14.78% decline to $3.84, while data center REIT Fermi led gainers with a 22.31% jump to $7.40.

Zillow posted $46 million in net income last quarter while Opendoor burned $246 million in operating cash, highlighting their starkly opposite business models. Zillow’s revenue grew 18.4% to $708 million, driven by a 42% jump in rentals and a 56% surge in mortgage revenue, with purchase loan originations nearly doubling to $1.5 billion. Opendoor’s revenue fell 38% to $720 million as homes sold dropped to 1,921 units, though it slashed aged inventory over 120 days from 51% to 10% and signed over 5,000 acquisition contracts, its highest since 2022. Zillow’s 73.3% gross margin enabled aggressive share buybacks of $626 million, while Opendoor took a $105 million restricted stock unit charge tied to its new CEO and posted a $49 million adjusted net loss. With Zillow trading at 14 times forward earnings after a 54% one-year decline, its capital-light, high-margin platform is seen as the cleaner risk-adjusted investment compared to Opendoor’s asset-heavy turnaround story.

Opendoor Technologies is shutting down its India operations and laying off nearly 250 employees as part of a restructuring under CEO Kaz Nejatian, who aims to rebuild the company around software and automation. The decision comes less than two years after Opendoor called India a key engineering and operations hub. The company reported a GAAP loss per share of $0.18 in its most recent quarter, wider than the estimated loss of $0.07, while revenue fell almost 38% year-over-year to $720 million. Analysts maintain a consensus Hold rating on OPEN stock with an average price target of $3.95 per share, implying about 8% potential downside. Opendoor was recently added to the Russell 3000 Index, which may attract passive fund inflows, and a planned $200 billion government housing push could provide a policy tailwind.