Like all tech stocks, Opendoor Technologies (NASDAQ:OPEN) is also having a tough time holding its foot in the industry. OPEN stock is down 63% over the past six months and its fourth-quarter results didn’t help the stock much. However, the stock began a noticeable rise on Monday, trading at $8.09. Once trading at the highs of $25, OPEN stock has taken a beating but there is positive news that could explain the rise.
Opendoor recently announced its expansion in 17 select counties in New Jersey and New York. This is the company’s 46th market in its nine year history and it shows the ability of the company to meet the demands of customers while continuing to grow. This move could help the company in the long term and will have an impact on the bottom line. The company has already become a disrupter in the real estate space, so further expansion is a good sign.
OPEN stock was up nearly 9% on Monday, but it has a long way to go to reclaim its previous highs. Some investors believe OPEN stock has hit a bottom, and now is a good time to take a position. The question is whether that opportunity could be long term or not.
Fellow InvestorPlace contributor Faisal Humayun thinks that OPEN stock is a good trading move, but not for the medium term, while another InvestorPlace’s Luke Lango believes that the stock is up for a huge quarter.
A lot is at stake for the company and there are several external factors that will continue to impact the growth and revenues in the near term. Despite reporting robust numbers, Opendoor struggled over the past few months.
Notably, the Nasdaq was down on Monday as OPEN stock was gaining. Investors can only hope that the reversal rally continues, but it is too soon to set high hopes.
On the date of publication, Vandita Jadeja 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.