Historical Price Prediction - $OPEN

A week after Zillow announced its sudden departure from the home-buying market, rival Opendoor reported third-quarter results that topped estimates. This suggests that $OPEN has long-term potential and I’d buy this stock at about $16.50 or lower.Tomorrow it will spike on the great Earnings being up 15% after-hours already. The short volume as a result has decreased sharply, reported by the short interest API.Opendoor really grew in 2021 so far:Revenue in the quarter climbed to $2.27 billion from $338.6 million a year earlier, when the Covid-19 pandemic put a temporary freeze on transactions.Revenue was up 91% from the second quarter, and exceeded the $2.01 billion average analyst estimate, according to Refinitiv.Analysts consider the stock is worth $32 on average.Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States. Its platform enables consumers to buy and sell a home online. The company was founded in 2014 and is based in Tempe, Arizona.Opendoor really does mean more convenience in the real estate market. Think about it, founded in 2014, Opendoor pioneered the instant-buying, or iBuying, home market by allowing homeowners to sell their home for cash without listing it on the market and dealing with a lengthy bidding and closing process.Zillow which started doing a similar thing in 2017 basically gave up in late 2021. This year as massive swings in home prices undermined Zillow’s predictive models and ultimately left the company spending more on properties than it could make selling them. Opendoor thus beat Zillow in this important segment of the business and gives them more room to grow dominant.In an interview after Opendoor’s report on Wednesday, finance chief Carrie Wheeler said the company has built its technology to ensure it can manage through unpredictable market events. The same was not true for Zillow apparently.For the fourth quarter, Opendoor forecast revenue of $3.1 billion to $3.2 billion, topping the $2.92 billion average analyst estimate, according to Refinitv.Opendoor is still small but growing fast. Opendoor sold 5,988 houses in the period, up 72% from the second quarter, and it purchased 15,181 homes, which was up 79% from the prior period.I like the way its gross profit has been increasing. Still 2019 was a breakthrough year and until things are more settled it’s not clear if it can regain that form. Zillow was the second-largest iBuyer in the industry, so the departure leaves a huge “hole” in the iBuying world. Offerpad is the other iBuyer and the success typically depends on the efficacy of the pricing algorithm. Ticker for Offerpad is $OPAD.As a long-term investment, I consider $OPEN an above average investment.