Opendoor (NASDAQ:OPEN) stock has been on a downtrend since November of last year, but don’t let that shake you.

The disruptive force in real estate uses data analysis and automation to bring transparency into what was once an opaque process.

It has taken over as the industry leader after Zillow (NASDAQ:ZG), quit the iBuying business. Investors are nervous about investing in Opendoor due to the recent failures of Zillow and other similar companies.

In the last three months, OPEN stock has been down 60.1%. That is a steep drop and does not correlate to the usual post-merger drop of special purpose acquisition companies (SPACs).

Chamath Palihapitiya is a Silicon Valley entrepreneur and investor who has devised an innovative way to take private unicorns public through special purpose acquisitions companies (SPACs).

The SPAC deal to bring Opendoor public valued the company at nearly $5 billion. The valuation itself isn’t all too surprising, given its earlier investors. Still, it’s impressive to see how much profit some people think this startup could make them.

What’s not to love about OPEN stock? They are executing at a high level and rapidly growing beyond expectations.

When they went public, management had guided them to do $3.5 billion in revenue this year and $9.8 billion by fiscal 2023.

The company is on track to finish the year with revenue more than twice the original estimates. These are huge numbers, given the company only started in 2014.

Opendoor makes an effort to take advantage of every opportunity it comes across, and now with its dominant position in the industry. The company will only grow from here. Therefore, you cannot afford to ignore OPEN stock.

Earnings Are Outstanding

Zillow’s abrupt departure from the home-buying market has left many wondering who will take their place. Luckily, it looks like we might have an answer soon enough.

Opendoor released third-quarter results that topped estimates and issued a bullish outlook for what lies ahead this year. The company reported a significant increase in revenue for the quarter.

The figure climbed to $2.27 billion from just $338.6 million last year. That was when Covid-19 interrupted transactions during its height of severity.

Opendoor is on a roll. The company sold 5,988 houses in the second quarter of this year alone and purchased 15,181 homes for their listings.

It exceeded revenue estimates by a wide margin but still managed to lose 9 cents per share.

However, the numbers handily beat analyst estimates for the second time in a row. Opendoor forecasts revenue between $3.1 billion and $3.2 billion for the fourth quarter.

With a nearly limitless number of opportunities in this space, the company has a huge total addressable market.

The number of homes sold in the U.S has been upward since 2011. It is projected to continue this trajectory through 2021, with 7 million homesales expected over that period.

“We exited the high end of our guidance, primarily due to unit volumes driven by strong home acquisition growth and the overall strength of demand for homes, which led to a faster sell-through rate than we anticipated,” Chief Financial Officer Carrie Wheeler said.

The Business Model Sets Opendoor Apart

Opendoor is a company that offers homebuyers and sellers the opportunity to buy or sell their homes without any traditional real estate agents.

Its business model relates itself with an innovative concept they refer to as iBuying, which can be different from house flipping.

The process allows customers more control over how much money goes into each transaction. 

iBuyer is a service that makes buying or selling your home easier by focusing on homes in good condition, with no-nonsense experts who know what they’re doing.

Opendoor charges only 5% of the sale price as a fee for their help from start to finish. The iBuying market was initially chaotic as three primary companies fought for dominance.

Opendoor, Zillow and Offerpad (NYSE:OPAD) had different strategies to enter this new space with mixed success. But now, the dust is settling, and winners are emerging.

Zillow’s iBuying unit took a rapid approach and started to lose money on many transactions. As a result, the company still has 9k homes listed under “iBuy” despite exiting the market.

Offerpad has been more careful about which houses it wants to buy so that when they are resold at a profit, there will be as much money in their pocket.

For example, Zillow had three times the number of available homes by November compared with March this year, but Opendoor’s slow approach is paying off because it’s making less risky investments.

OPEN Stock Is a Quality Value Play Available at a Discount

Opendoor’s stock price has been steadily declining over the past few months because of several factors.

The company is still growing but not as fast anymore due to recent market volatility, and news about Zillow exiting this part of the real estate industry for good has not helped matters.

The future is unpredictable. But Opendoor has the potential to grow exponentially. They have been given high ratings by users.

The iBuying process is simple, straightforward, and fast. All you need do as a seller of your house with cash in hand ready to sell-and they’ll take care of everything else while also getting their service fee out of the deal.

Opendoor’s technology has been developed to manage unpredictable market events. The business model is enticing. Plus, Opendoor is now virtually the only game in town with Zillow’s departure.

With an affordable valuation and endless opportunities ahead of them – OPEN stock is worth your time.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. You can check out his analysis on InvestorPlace and TipRanks.