Openndoor reserves have jumped over 1000%in the last three months.
Upstart has many similarities with Openndoor.
The FinTech company has proven that its model can operate even at high interest rates.
10 shares we like more than upstart ›
Openndoor Technologies(Nasdaq: open) Dazzled investors in the last three months, like several other shares. The online home Flipper has jumped incredible 1,400%in the last three months, and at a time has moved from just over $ 0.50 for a share of more than $ 10.
The rally began with the risk insurance fund manager Eric Jackson, which in the case that the shares may be other Carvanawho jumped up to almost 100 times the starting price after 2022 Went bankrupt after the bankruptcy. This argument received Steam Online and helped Opendoor turn meme in stock as it initially increased in large -scale and no news.
Since then, promotions acquired by Real News. This includes the prospect of federal reserves to reduce interest rates next week and later this year and the company’s board, which will restructure its management team. August Carrie Wheeler, CEO of CEO, retreated; After hours on Wednesday, Openndoor is named Shopify Central Operational Officer Kaz Nejatian as a new CEO, who sent shares in 80%on Thursday.
In addition, the company said the founders Keith Rabois and Eric Wu joined the Board of Directors again and the companies related to them invested $ 40 million in Opendoor. It is easy to see how the news would inject enthusiasm into stock, especially after it was on the doorstep Nasdaq Stock Exchange earlier.
However, Opendoor has not really changed in the last three months. The company has never reported around the year, and the business is expected to shrink this quarter for a weak housing market.
This is still a high risk using a dubious business model. If you are looking for similar shares that could take advantage of decreasing interest rates, I think this UPSTART HOLDINGS(Nasdaq: UPST) There is a better bet and that it can overtake Opendoor over the next three years.
Image Source: Getty Images.
Upstart has many things in common with Openndoor. They both publicly announced around the same time in 2020, and initially left the gate, before that in 2022, when the interest rates rose and the technology reserves crashed.
Upstart is the initiator of the loan. This uses artificial intelligence (AI) technology for applicants to check, and the results are much better than the traditional FICO scores. When she creates a loan, she usually sells it to one of its funding partners, so she does not keep her books.
Like Openndoor, the Upstart business fought back in 2022, but the company updated its business with the help of an improved AI model that increased its loan conversions. Even with high interest rates for the environment, it increases income growth. And now it is profitable based on the generally accepted accounting principles (GAAP).
In the second quarter, revenue increased by 102% to $ 257 million. USD, and the volume of operations increased by 159%. The company reported $ 5.6 million.
Upstart has set up its own business because of consumer loans, but it is rapidly expanding with car and home loans. The home loan market where it could compete with Opendoor is huge. In the second quarter, the origin of the Uppstart home increased by almost 800% from the quarter to $ 68 million. This is still a small part of her business, but it is clear that the home loan market is waiting for greater growth.
After the Opendoor increase and the Openndoor are a similar market in the market. The Uppstart is worth $ 6.1 billion since Friday, with the Openndoor market top $ 6.7 billion.
Both companies also chase huge markets and are likely to benefit from lower interest rates.
However, Uppstart is the only one of the two proving that it can grow in a complex macromandy, and its business now seems to ensure constant profitability. Meanwhile, Openndoor raises real questions about whether hosting can be increased as a business model and earning consistent profits. It should be noted that both Zillow Group and Redfin (a subsidiary Rocket companies) bowed from the Ibuying competition, seemingly too difficult and prone to big losses.
With those differences in mind, despite Openndoor fans, Upstart looks like a better bet today. The UPstart seems to be two winners in the next three years.
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Jeremy Bowman holds Carvana, Rocket Companies, Shopify and Upstart. Motley fools hold positions and recommend Shopify, Upstart and Zillow Group. The Motley fool recommends Nasdaq and Rocket Companies. The Motley fool has a disclosure policy.
Forecast: This artificial intelligence (ai) shares will overcome Openndoor Technologies in the next 3 years in the Motley Fool
