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Opendoor Gains After Cathie Wood's ARK Buys Shares

Published 04/14/2021, 12:40 AM
Updated 04/14/2021, 12:50 AM
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By Dhirendra Tripathi

Investing.com – Opendoor Technologies Inc (NASDAQ:OPEN) shares rose more than 4% Tuesday, buoyed by Cathie Wood’s Ark Invest active ETFs, which adding 633,400 shares to its portfolio.

The San Francisco-based online real estate company makes as-is cash offers to property sellers through an online process, improves and repairs the properties it purchases, and then relists them for sale.

Opendoor became publicly-traded via a merger with blank-check company, Social Capital Hedosophia Holdings, in December, raising net proceeds of $970 million.

Its 2020 revenue came at $2.58 billion, as compared to $4.74 billion for 2019, a drop of 44%. For the first quarter of 2021, revenue is expected to be between $600 million and $625 million, which represents 146% sequential growth over the December quarter.

Ark discloses its trades daily through Friday. The daily trades are not comprehensive lists of a day's trades and exclude initial/secondary public offering transactions and ETF creation/redemption unit activity.

The shares, after accounting for today’s rise, are almost half of their 52-week high of $39.24.

Wood has carved a legend for herself with her bullish calls on many companies she sees as disrupting the status quo like those in biotech and renewable energy. She is most famous for her ultra-bullish calls on Tesla Inc (NASDAQ:TSLA) since 2019, when few trusted the Elon Musk company to even survive.

Ark has a target price of $3,000 for each Tesla share by 2025.

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