Opendoor's Q3 2024 Update: A New Hope

August has been a weird month for $OPEN. After hitting 52-week lows of $1.58 following the Q2 earnings call, the stock is currently trading at $2.35, buoyed nearly 50% by the promise of rate cuts.

Frankly, moving back into a lower rate environment is more important than one quarter of performance.

Residential real estate has struggled for 2+ years since the Fed hiked rates at historic pace, dragging companies like Zillow, Redfin, Offerpad, Compass and of course, Opendoor, into the abyss. We are living in a real estate ice age, where sellers don't want to sell, or only will sell at prices incompatible with reality, and buyers don't want to move, or can only move for a price that doesn't get them what they want.