Can Opendoor Technologies Deliver Multi-Bagger Returns From Current Levels?

A Dramatic Turnaround Story

Opendoor Technologies (NASDAQ: OPEN) has experienced a remarkable recovery in 2025, with shares surging approximately 264% year-to-date and reaching intraday gains exceeding 580% during mid-September. This explosive move represents a stunning reversal for a company that lost 64% of its value just the year prior and traded as low as $0.51 per share by mid-2024. While this gain is exceptional, investors eyeing Opendoor as a potential multi-bagger opportunity should recognize the substantial risks that come with such a volatile turnaround story.

Despite the impressive rally, Opendoor stock remains approximately 80% below its all-time peak reached in early 2021. At current valuations—trading at just 1.1 times trailing 12-month sales—the company appears attractively priced on paper. The question for investors is whether this discount reflects genuine opportunity or legitimate structural challenges that continue to weigh on the business.

Leadership Shift Signals a New Strategy

The catalyst driving much of the stock’s recent momentum stems from transformative leadership changes. Following pressure from coordinated retail investor efforts, the company installed a new CEO, Kaz Nejatian, who previously held senior positions at Shopify. Nejatian is implementing a fundamentally different operational philosophy centered on maximizing transaction volume rather than profit margins per deal.

This strategic pivot represents a significant departure from the previous approach. Nejatian is simultaneously streamlining corporate operations and integrating artificial intelligence systems to automate routine, labor-intensive processes. These efficiency initiatives aim to reduce costs while scaling the platform’s capacity.

However, it’s crucial to understand the context: Opendoor operates within the iBuying sector, a space where several competitors have already exited due to severe market pressures. The company’s core model involves acquiring residential properties in volume, executing renovations, and reselling through its marketplace or external distribution channels. This business model remains inherently sensitive to real estate market conditions.

Evaluating the Multi-Bagger Potential

For Opendoor to transform into a genuine 10-bagger or higher-multiple winner from current price levels, the conditions required extend well beyond social-media-driven momentum. The company would need to experience several concurrent tailwinds:

The Revenue Scaling Scenario: Opendoor currently generates $4.7 billion in trailing 12-month revenue. To achieve 10-times growth—reaching $47 billion annually—would require the company to dramatically expand transaction volume while maintaining operational discipline. In a normalized real estate environment with healthy transaction velocities, such expansion isn’t mathematically impossible, particularly given the substantial size of the U.S. residential market.

The Valuation Lock Theory: If Opendoor maintains its current price-to-sales multiple and simultaneously grows revenues tenfold, the stock price would theoretically follow a similar trajectory. This mechanical relationship assumes both sustained operational excellence and favorable market conditions.

The Timing Question: Most realist analysts suggest that meaningful financial improvements likely won’t materialize until the broader real estate environment strengthens considerably. Elevated mortgage rates and inventory pressures continue constraining market dynamics, potentially delaying the company’s path to profitability and scale.

The Risk Assessment

While Opendoor’s stock may no longer be catastrophically undervalued, characterizing it as underpriced requires conviction about the CEO’s execution ability and an incoming real estate cycle improvement. The company currently trades at reasonable valuations relative to revenue, meaning substantial appreciation likely depends on operational excellence and market normalization rather than simple multiple expansion.

Investors considering Opendoor should approach this as a high-risk, high-reward proposition suitable only for capital they can afford to lose. The potential for a multi-bagger exists, particularly if the real estate market strengthens and the new management team successfully executes its volume-focused strategy. However, the path to such returns remains uncertain and dependent on external factors largely beyond management’s control.

Investment Consideration

Before committing capital to Opendoor Technologies, carefully weigh the company’s execution risk against its upside potential. The stock’s 2025 rally has restored some credibility, but sustainable value creation requires more than momentum—it demands a favorable macroeconomic backdrop and flawless operational execution.