|Bid||25.50 x 900|
|Ask||26.09 x 1100|
|Day's Range||25.00 - 26.72|
|52 Week Range||10.55 - 32.39|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||32.50|
(Bloomberg) -- Jeff Housenbold, the SoftBank Vision Fund managing partner involved in its bets on unicorns including DoorDash Inc. and Opendoor Technologies Inc., is leaving the firm, according to a memo seen by Bloomberg.The executive, who has worked at SoftBank since 2017, is leaving to run his own business, SoftBank Vision Fund Chief Executive Officer Rajeev Misra, said in the memo. Housenbold led 17 investments across the firm’s first and second funds including Compass, Rappi, Alto, and Memphis Meats.“Jeff has been an exceptional investor, a trusted adviser to our companies, a strategic thought leader and a champion of diversity and inclusion,” Misra wrote.Housenbold will remain with the firm for six months to ensure a “smooth changeover,” and then will be a senior adviser to Misra and SoftBank founder Masayoshi Son. The former CEO of photo-sharing platform Shutterfly, Housenbold is responsible for the Vision Fund’s investments in other companies including Clutter, Katerra and Plenty, the firm’s website shows.DoorDash, which had an initial public offering last month, and Opendoor, which went public last year through a merger with a special purpose acquisition company, are slated to be winners for the Vision Fund, which had been hurt by a high-profile bet on WeWork.Housenbold also oversaw SoftBank’s bets on dog-walking startup Wag, which resulted in a stake sale back to the company, and Brandless, a direct-to-consumer personal care and packaged goods company, which shuttered last year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Venture capitalist Chamath Palihapitiya is having a fantastic run. He brought a whole bunch of special purpose acquisition companies (SPACs) to market in 2020, and they’ve pretty much all been successful. He’s also become more popular on television and social media over the past year. He’s been able to use his higher profile to effectively market his investment ideas. One of those is Opendoor (NASDAQ:OPEN). OpenDoor stock has already surged from $10 to $26, and looks headed for more gains this year. Source: PREMIO STOCK/Shutterstock.com OpenDoor is one of the leaders of the online real estate space. It aims to replace traditional real estate brokerage services with an easier digital alternative. In particular, it focuses on making it easier to sell homes without having to pay huge commissions. As Chamath explains, OpenDoor is building a “virtuous cycle” in which it can buy homes from consumers within three days. Once customers are interacting with OpenDoor, the company can also sell them loans, insurance, and other housing-related services. He also says that OpenDoor’s long-term fundamentals will be strong. Thanks to upcoming tax changes, the work-from-home phenomenon, and demographics, Palihapitiya believes the housing market will be robust for an extended period of time.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Housing Market Is Booming So far, his vision is playing out. It’s no secret that the housing market is doing very well now, due to the government’s stimulus efforts and the Covid-19 pandemic. Among those benefiting from that trend are appliance makers, landscaping companies and home-improvement stores. The shares of nearly all companies that sell housing-related products are climbing. That only makes sense, since the U.S. housing market surged by the largest amount in six years last fall. 9 Stocks That Investors Think Are the Next Amazon Naturally, this has a positive impact on OpenDoor’s business as well. The value of the houses that it owns should be increasing. And the traffic on OpenDoor’s website should increase as excitement over the housing market builds. Meanwhile, the virtuous cycle that Chamath described should take hold. With people focusing more on their houses, it’s only natural that they’ll be willing to buy more services from OpenDoor. OpenDoor Is Well-Positioned… for Now OpenDoor has many vocal critics and skeptics. For example, take a look at this recent article which questioned the company’s business model, pointing out that it has thin profit margins and is burning a great deal of cash. It’s reasonable to have concerns about OpenDoor . The company’s strategy of quickly buying houses is unproven. So far, OpenDoor has earned small profit margins with its house flipping. Its profit margin was just 1% in 2019, for example. In a bad real estate market, OpenDoor could end up with a lot of expensive inventory that could result in substantial losses. Indeed, buying thousands of homes indiscriminately may not be the best use of shareholders’ capital. That, however, is a problem for another day. Right now, the housing market is moving up sharply. So even if OpenDoor’s house-purchasing methodology isn’t perfect, simply having inventory in a rising market is going to be profitable. A rising tide lifts all boats, after all. Bears raise some valid questions about OpenDoor. But timing is everything. Right now the market loves SPACs, Palihapitiya is on a massive winning streak, and the housing market is booming. OPEN stock is a play on all these catalysts. Concerns about the company’s business model will return at some point, but they won’t arise anytime soon. The Verdict on OpenDoor Stock When it comes to OpenDoor stock, investors have to determine how long they want to hold the shares. For those looking to invest in OpenDoor for the long-term, the bears raise some valid points. I’d carefully consider those risks before holding the shares for an extended period, since it hasn’t demonstrated that its business model is capable of dealing with downturns just yet. That said, let’s not overthink this. In the short-term, the housing market is hot. Tech stocks are working. And everything Chamath Palihapitiya touches has been turning to gold lately. Thus, the path of least resistance for OpenDoor stock is higher for the foreseeable future. And, compared to other SPACs, the stock hasn’t run up all that far yet. In this sort of market, it’s easy to see traders bidding up OpenDoor as the spring home-buying season gets under way. On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post OpenDoor Is Riding Several Huge, Positive Catalysts appeared first on InvestorPlace.
They’ve been making headlines in recent months, and for plenty of reason. The SPAC, or special acquisition company, is exactly what its name suggests: a company formed specifically to make an acquisition. In essence, a SPAC is a shell company, flush with funds, that is formed to seek a merger target. The target company is typically a small- to mid-cap player that wants to go public, but lacks cash. The SPAC provides the cash.It sounds like a great deal, doesn’t it? And for the SPAC’s investors, it can be. SPAC shares are sold in $10 units that include a warrant for future purchases at a locked-in price; the result is a return of 10% or more at reduced risk for investors in the SPAC. But according to a Wall Street Journal investigation of SPAC mergers completed between January 2019 and June 2020, the combined entity lost 12% of its value in its first six months of public trading.As usual in the stock market, there is a mix here of risk and reward. The risks, however, have not dampened the increasing popularity of SPAC mergers in the past year. There were 59 of these deals completed in 2019 – but 2020 saw 248 of them, for a 320% increase. The average SPAC merger in 2020 was worth $334 million, compared to $72 million in 2010.For good or bad, Wall Street’s analysts still expect the SPAC train to keep rolling. Banking giant Goldman Sachs is on record predicting a total of $300 billion worth of SPAC merger activity by the end of 2022. The bank’s head of US equity strategy, David Kostin, explains the stance, saying, “Increased retail trading activity has boosted interest in early-stage SPAC targets. SPACs have low opportunity cost for investors when policy rates are near zero.”The professional analysts aren’t just commenting on the trend; they are looking at the new tickers entering the market, too, and publishing their ratings. Turning to the TipRanks database, we’ve pulled up the latest on two such stocks that some of the analysts have tagged as potentially strong investments.Fisker (FSR)The Southern California electric vehicle maker got its start in 2016, and announced the completion of a SPAC merger with Spartan Energy on October 30, 2020. The stock has gained 64% in trading since then.The quick gains for Fisker show both the growing popularity of electric vehicles in the market, and the particular strengths of Fisker’s approach. The company has a focus on solid-state battery technology, a developing alternative to the current lithium-ion batteries. Solid-state promises longer range, faster charging, and lower weight in EV battery backs. The company has numerous patents on solid-state battery tech, intended to lock in its niche for other industries, such as consumer electronics.Fisker has also announced its all-electric Ocean SUV model. The vehicle will compete with Tesla’s Model Y, with similarly modern styling and lower starting price. The Ocean is slated to hit the markets in 2022.Cowen analyst Jeff Osborne is optimistic about the future of the EV market, and Fisker’s place in it. “[We] believe Fisker is well-positioned to win share in the changing auto space as the industry undergoes a paradigm shift away from ICE vehicles toward EVs. The auto industry continues to move toward an electrified future with an increasing number of government mandates ordering countries and auto producers alike to pivot toward an EV-centric future. Consequently, we believe Fisker's flagship Ocean vehicle - which is a premium EV with an affordable starting price of $37,499 - is well-positioned to take share in the large and growing EV market," the 5-star analyst opined.In line with these comments, Osborne rates FSR an Outperform (i.e. Buy), and his $22 price target suggests the stock has ~45% upside potential in 2021. (To watch Osborne’s track record, click here)Overall, the recent reviews on FSR, breaking down to 3 Buys, 1 Hold, and 1 Sell, give the stock a Moderate Buy consensus rating. Shares are priced at $15.21 and the average price target of $19.75 implies a one-year upside of 30%. (See FSR stock analysis on TipRanks)Opendoor Technologies (OPEN)Opendoor is an online residential real estate platform, offering buyers and sellers the ability to connect directly, without need for a realtor. Opendoor operates in major urban areas across the US, including such rapidly growing cities as Atlanta, Houston, and Nashville.In December of last year, Opendoor announced the completion of its business combination merger with Social Capital Hedosophia II, with trading beginning on the NASDAQ under the OPEN ticker on December 21. Opendoor finished the trading day with over 544 million shares outstanding and a market cap exceeding $15 billion.The online real estate market is expected to be profitable, and Opendoor’s model, which allows institutional buyers to purchase home from individual sellers, particularly so. The company is projected to sell 24,000 homes next year, and 38,000 the year after. In revenue numbers, Opendoor is predicted to reach $10 billion annually within three years.Covering the stock for Oppenheimer, 5-star analyst Jason Helfstein noted, “Opendoor currently holds a dominant lead in iBuyer market share, and we believe the company will continue to realize unparalleled scale efficiencies as it expands into new markets." Helfstein added, "We forecast OPEN growing annual number of homes sold at a 26% CAGR ’19-‘25E. However, we anticipate a 48% y/y decline in number of homes sold in FY:20, following the 3/19/20 pause on home offerings due to COVID-19 related uncertainties. We conservatively set our average revenue per home estimates at 1% CAGR ‘19-‘25E, though see upside to these estimates as the company scales its adjacent services offering." All of the above prompted Helfstein to kick off his OPEN coverage by issuing a bullish call. At his $34 price target, shares could be in for ~23% gain over the next twelve months. (To watch Helfstein’s track record, click here)All in all, OPEN has 2 Buy-side ratings given in recent weeks. These are partially balanced by a single Hold, making the analyst consensus view a Moderate Buy. OPEN shares closed today at $27.70, and have a 17% upside potential based on the average price target of $32.50. (See OPEN stock analysis on TipRanks)To find good ideas for SPAC stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.