Latest news with #SPAC
Yahoo
16 hours ago
- Business
- Yahoo
Where Will D-Wave Quantum Stock Be in 3 Years?
Key Points D-Wave's stock has gone through some wild swings over the past three years. Its new Advantage2 system could ignite its near-term growth. But a lot of that growth is already baked into its bubbly valuations. 10 stocks we like better than D-Wave Quantum › D-Wave Quantum (NYSE: QBTS), a provider of quantum annealing services, has taken its investors on a wild ride since going public, nearly three years ago, by merging with a special purpose acquisition company (SPAC). It opened at $10, sank below $1 in 2023, but now trades at about $17. The bulls expect the market's demand for its quantum services to soar in the future, but the bears argue that it's overvalued relative to its growth potential. Let's review D-Wave's recent growth trajectory and see where it might be headed over the next three years. What happened to D-Wave over the past three years? Quantum computers can process data faster than classical computers, but they're larger and more expensive, and they consume much more power. That's why they're still mainly used for niche research projects at universities and government agencies. But as quantum processing units (QPUs) get smaller, more power-efficient, and more accurate, they can be used in a wider range of mainstream computing applications. D-Wave aims to capitalize on that transition with its quantum annealing tools, which help companies streamline their workflows, supply chains, and logistics networks. It runs those processes through different scenarios and identifies those that consume the least power as the most efficient ones. D-Wave designs its own QPUs and quantum systems, and it provides its services through its cloud-based Leap platform, which is compatible with leading cloud infrastructure platforms like Amazon (NASDAQ: AMZN) Web Services and Microsoft (NASDAQ: MSFT) Azure. D-Wave's practical approach to quantum computing attracted the attention of more than 100 major customers, including Deloitte, Mastercard, Volkswagen, Lockheed Martin, and Accenture. But over the past three years, it hasn't generated much revenue, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) remains negative, and its net losses significantly widened. Metric 2022 2023 2024 Revenue $7.2 million $8.8 million $8.8 million Adjusted EBITDA ($48.0 million) ($54.3 million) ($56.0 million) Net income ($51.5 million) ($82.7 million) ($143.9 million) Data source: Marketscreener. That's because most of D-Wave's customers are still running low-revenue pilot and research programs on its Leap platform instead of using it to overhaul their entire businesses. D-Wave's revenue occasionally spikes when it sells one of its Advantage quantum systems, but those sales are infrequent and unpredictable and have lengthy upgrade cycles. In the absence of those lumpy system sales, D-Wave must rely on Leap's cloud revenues to drive its growth. However, its cloud margins won't improve unless its customers commit to bigger contracts and actually replace their older analytics services with its quantum annealing tools. To stay solvent until that happens, D-Wave has constantly issued more shares. It's increased its number of shares by 184% since its SPAC-backed debut, and that dilution should continue as it covers its stock-based compensation expenses, convertible debt, and upcoming warrant redemptions. What will happen to D-Wave over the next three years? From 2024 to 2027, analysts expect D-Wave's revenue to grow at a compound annual growth rate (CAGR) of 103% to $74.1 million as it gradually narrows its net losses. Metric (Estimated) 2025 2026 2027 Revenue $24.4 million $38.0 million $74.1 million Adjusted EBITDA ($56.7 million) ($58.8 million) ($29.6 million) Net income ($72.9 million) ($79.3 million) ($62.6 million) Data source: Marketscreener. The main catalyst for that growth would be rising sales of higher-value hardware systems. The recent launch of D-Wave's Advantage2 quantum system, which runs on a 4,400-qubit QPU and can solve 3D lattice problems approximately 25,000 faster than its first-gen Advantage system while consuming less power, should attract more customers. Sales of those systems, each of which costs an estimated $20 million to $40 million, should drive top-line growth and overshadow cloud revenues. However, the Advantage2 should also strengthen the Leap cloud platform and convert more of its lower-value pilot customers to higher-value ones. Where will D-Wave Quantum's stock be in three years? D-Wave has a lot of growth potential, but a lot of that growth is already baked into its valuations. With a market cap of $5.8 billion, it's valued at nearly 79 times its projected sales for 2027. That makes it seem more like a meme stock than a hypergrowth stock. According to Markets and Markets, the quantum annealing market could grow at a CAGR of 32.7% from 2024 to 2029. Assuming D-Wave matches analysts' expectations through 2027 and continues to grow its revenue at a CAGR of 30% over the following two years, it could generate $125 million in revenue in 2029. If it still trades at 79 times its forward sales by then, its market cap could swell to $9.9 billion by the beginning of 2028. But with a more realistic (but still generous) forward price-to-sales ratio of 30, D-Wave's market cap would decline to $3.75 billion by 2028. So while D-Wave still has a lot of growth potential, it seems more likely that its stock will stagnate or decline over the next three years instead of soaring even higher. Should you invest $1,000 in D-Wave Quantum right now? Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and D-Wave Quantum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Accenture Plc, Amazon, Mastercard, and Microsoft. The Motley Fool recommends Lockheed Martin and Volkswagen Ag and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Where Will D-Wave Quantum Stock Be in 3 Years? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Business
- Forbes
QuantumScape: QS Stock To $0?
CHONGQING, CHINA - JULY 19: In this photo illustration, a smartphone displays the logo of ... More QuantumScape Corporation (NYSE: QS), a solid-state battery technology company focused on the development of next-generation energy storage solutions for electric vehicles, in front of a screen showing the company's latest stock market chart on July 19, 2025 in Chongqing, China. (Photo illustration by) While QuantumScape's recent Cobra separator breakthrough has ignited significant investor enthusiasm, it's crucial to acknowledge that multiple pathways could still lead to complete value destruction, despite the promising technical progress. In our previous analysis of QS stock, we explored the bull case scenario and its upside potential. This note, however, focuses on the potential downside scenarios that investors should consider. That said, if you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception. Also, see – Time To Buy Centene Stock? Cash Burn QuantumScape's financial position poses an immediate existential threat. With a trailing 12-month free cash burn rate of $331 million and operating cash burn of $277 million, the company faces a potential liquidity crisis. The original SPAC presentation's 2025 revenue projection of $39 million now appears overly optimistic, and a pattern of missed financial milestones suggests that current cash runway calculations may also be unrealistic. Technology Risk The landscape of next-generation battery technologies is shifting, with silicon anodes potentially bypassing solid-state solutions entirely. Industry experts are increasingly questioning the commercial viability of solid-state batteries, with some noting "the hype around solid-state batteries is fading." (CNBC) If alternative technologies like those from Amprius Technologies, Enovix, and Enevate achieve market success first, QuantumScape's decade-long investment could become worthless. Manufacturing Issues Scaling ceramics production to gigawatt-hour levels has historically proven challenging for many startups. QuantumScape must simultaneously master materials science, precision manufacturing, quality control, and supply chain management while maintaining cost competitiveness. The Cobra process addresses only one component of this complex ecosystem, meaning a single critical failure in any area could derail commercialization. Competitive Risk Well-funded competitors like Toyota, Samsung, LG Chem, and Solid Power (backed by BMW and Ford) possess decisive advantages. Their established manufacturing capabilities, automotive relationships, and financial resources dwarf QuantumScape's, allowing them longer development timelines and multiple technology bets. Early market entry by any rival could establish dominant positions. Partnership Dependency QuantumScape's survival critically depends on its relationship with PowerCo/Volkswagen. Any strategic shift, financial pressure, or technology pivot by Volkswagen could eliminate QuantumScape's primary commercialization pathway. Automotive partnerships are notoriously volatile for unproven technologies, and losing this relationship would devastate market access and damage credibility for attracting new partners. For example. Magna and Lyft had a collaboration in self-driving vehicle technology that eventually ended. The intense R&D costs and the prolonged timeline to commercialization for fully autonomous vehicles have made many such partnerships challenging. Similarly, the partnership between Volvo Cars and Veoneer autonomous driving technology also concluded. Developing safe and reliable autonomous systems at scale is incredibly complex and expensive, leading to shifting strategies and dissolved alliances. The Dilution Spiral Continued cash burn could necessitate further capital raises, leading to ongoing share dilution through mechanisms like at-the-market offerings. This gradual increase in shares outstanding could significantly diminish the value for existing shareholders. For perspective, QuantumScape's shares outstanding have increased from around 410 million in 2021 to 521 million now. Should capital market access tighten during a funding crisis, the company faces bankruptcy, even if its technology progresses. Takeaway QuantumScape's nature is binary: either revolutionary success or complete failure. Moderate outcomes are unlikely. The stock could reach zero due to cash exhaustion, technology obsolescence, competitive defeat, partnership collapse, or market timing failure. While the Cobra breakthrough is genuine progress, it may not be enough to overcome these fundamental survival challenges. This note, of course, focuses purely on potential downside scenarios and risks. However, there is also an upside scenario with 40x potential. QuantumScape emphasizes the critical importance of a diversified investment strategy over concentrated bets on high-risk ventures. We apply a risk assessment framework while constructing Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Yahoo
2 days ago
- Automotive
- Yahoo
Rivian vs. Lucid: Which EV Stock Is Winning in 2025?
Key Points Rivian and Lucid both disappointed early investors. Both companies face supply chain issues and intense competition. But one of these EV companies has clearer near-term advantages. 10 stocks we like better than Rivian Automotive › Rivian (NASDAQ: RIVN) and Lucid (NASDAQ: LCID) were both hot electric vehicle (EV) stocks. Rivian went public with an IPO price of $78 on Nov. 10, 2021, and its shares more than doubled to a record closing price of $172.01 just a week later. Lucid went public by merging with a special purpose acquisition company (SPAC) on July 26, 2021. Its shares started trading at $25.24, and more than doubled to a record closing price of $55.52 four months later. Both companies initially attracted a stampede of bulls with their ambitious growth targets, and the buying frenzy in emotion-driven meme stocks amplified their gains. But today, Rivian and Lucid trade at about $13 and $3, respectively. Both stocks fizzled out as they missed their own goals and racked up steep losses. Rising rates also popped their bubbly valuations. But when interest rates declined in 2024, Rivian and Lucid didn't bounce back even as investors pivoted back toward more speculative stocks. That sentiment is still chilly: Rivian's stock has only risen 5% since the beginning of 2025, while Lucid's stock dipped 3%. Should contrarian investors consider buying either of these EV stocks right now? Why did Rivian and Lucid disappoint the market? Rivian sells three EVs: its R1T pickup, its R1S full-size SUV, and an electric delivery van (EDV) for its top investor, Amazon (NASDAQ: AMZN), and other companies. Before it went public, it claimed it could produce 50,000 vehicles in 2022. But in reality, it only produced 24,337 vehicles that year as it grappled with supply chain disruptions. Lucid sells two vehicles: its Air sedan and its new Gravity SUV. In its pre-merger presentation, it claimed it could deliver 20,000 vehicles in 2022. Unfortunately, it only delivered 4,369 vehicles in 2022 as it also struggled with supply chain constraints and production issues. At their record highs, Rivian's market cap hit $153.3 billion, or 92 times its 2022 revenue; while Lucid's market cap reached $91.4 billion, which was 150 times its 2022 revenue. Those sky-high valuations set both stocks up for steep declines when they missed their own rosy forecasts. What happened over the following years? In 2023, Rivian more than doubled its production to 57,232 vehicles as it overcame its supply chain issues. But in 2024, its production dipped to 49,476 vehicles as rising rates chilled the EV market, it faced tougher competition, and it temporarily shut down its main Illinois plant to upgrade its production capabilities. In 2025, it only expects to deliver 40,000 to 46,000 vehicles as it deals with higher tariffs on its raw materials and batteries, ongoing supply chain challenges, and another temporary shutdown to prepare for the launch of its smaller R2 SUV in 2026. Rivian is dealing with a lot of growing pains, but it's still supported by Amazon, Porsche (OTC: POAHY), Saudi Arabian conglomerate Abdul Latif Jameel, and other big investors. It ended its latest quarter with $8.5 billion in liquidity, and it expects the rollout of its smaller R2 SUV to significantly boost its sales and profits as it reaches a broader range of customers. Lucid's deliveries rose to 6,001 vehicles in 2023 and 10,241 vehicles in 2024, but those numbers were dismal compared to its original estimates. Lucid faced many of the same macro and competitive challenges as Rivian, and its CEO, Peter Rawlinson -- who attracted a lot of attention for his previous stint as Tesla's (NASDAQ: TSLA) chief vehicle engineer -- stepped down this February. Its board still hasn't appointed a permanent CEO yet. Rivian's founder and CEO, RJ Scaringe, remains in charge of his company. Lucid claims it can more than double its production to 20,000 vehicles this year as it ramps up its production of the Gravity SUV, but it doesn't have a great track record of meeting its own expectations. Yet Lucid is still firmly backed by Saudi Arabia's sovereign Public Investment Fund (PIF), which owns nearly two-thirds of its shares, and it ended its latest quarter with about $5.7 billion in liquidity, which it claims can carry it through its launch of the Gravity SUV. Which stock has more upside potential? From 2024 to 2027, analysts expect Rivian's revenue to grow at a compound annual growth rate (CAGR) of 32% as Lucid's revenue rises at a CAGR of 85%. Based on those estimates, which we should take with a grain of salt, Rivian and Lucid trade at 3.2 times and 6.9 times this year's sales, respectively. Neither company is expected to come close to breaking even, but Rivian's gross margins turned positive over the past two quarters as economies of scale kicked in. Lucid's gross margins are still negative. Rivian's higher production rates, healthier gross margins, and more stable leadership make it a stronger investment than Lucid right now -- even if its production wanes ahead of the R2's launch. As for Lucid, I'm not sure it can successfully ramp up its production of the Gravity and meet Wall Street's high expectations. If it falls short of that goal, its valuations will decline and its stock will drop even further. Should you buy stock in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool recommends Porsche Automobil Se. The Motley Fool has a disclosure policy. Rivian vs. Lucid: Which EV Stock Is Winning in 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Best Stock to Buy Right Now: Amazon vs. Opendoor Technologies
Key Points A hedge fund manager believes Opendoor could go to $82 per share over the coming years. Amazon doesn't have nearly as much upside, but is already a proven winner. 10 stocks we like better than Opendoor Technologies › Wall Street thought struggling real estate e-commerce company Opendoor Technologies (NASDAQ: OPEN) was down and out. Suddenly, the stock has surged over 500% in less than a month. What's going on? A hedge fund manager recently announced an investment in the stock via social media, setting an $82 price target for shares that ignited interest in a company that has struggled in a slow housing market. But is it wiser to chase the momentum, or to look to a proven e-commerce winner in Amazon (NASDAQ: AMZN) instead? Let's take a closer look at Opendoor's prospects and determine which of these two hot growth stocks is the better buy right now. Is Opendoor Technologies poised for a comeback? Opendoor Technologies aimed to become the housing market's version of Amazon with iBuying, a process by which a company buys and resells homes through an online marketplace. The company went public via a special purpose acquisition company (SPAC) merger in late 2020, amid a period of 0% interest rates that ultimately led to high inflation and prompted the Federal Reserve to raise interest rates aggressively. The resulting spike in mortgage rates (plus already higher home prices) slammed the brakes on the housing market, creating tremendous problems for Opendoor, which took significant losses on homes it struggled to sell for a profit. Opendoor's stock has cratered since then as losses continue. Hedge fund manager Eric Jackson elaborated in his post on X that he believes the company's cost-cutting, pivot to partnering with agents, and lack of direct competitors offer a path to significant upside over the coming years, comparing it to the remarkable turnaround that Carvana achieved. Eric Jackson acknowledges the risks associated with Opendoor stock, but setting such a high target for a company has spiked investor interest in the stock, sending it soaring. Amazon offers far more certainty, though it's probably not a 100-bagger anymore Amazon, one of the world's most prominent companies, is a safer stock to own. It doesn't take a rocket scientist to figure that out. But Amazon's massive $2.4 trillion market capitalization also means it has nowhere near the upside potential Opendoor does. That said, the company still has room for growth. E-commerce accounts for less than a fifth of total retail spending in the United States, and Amazon's lucrative cloud unit, Amazon Web Services (AWS), is poised to grow significantly over the coming decade and beyond as artificial intelligence (AI) drives increased cloud usage. Analysts estimate Amazon will grow earnings by an average of 21% annually over the next three to five years. Assuming the stock's valuation remains the same, that growth would double the stock price in just under four years. That's no 100-bagger, but most investors would probably take those returns with a smile. Sometimes, a bird in the hand is worth 100 in the bush Comparing two very different e-commerce stocks boils down to this: The probability that Amazon doubles in value over the next three to five years is far greater than the probability that Opendoor increases by 100 times. Opendoor's core iBuying business is steadily dragging the company down, steadily depleting the company's book value. The iBuying process is a low-margin business model that ties up a significant amount of capital while unsold houses sit on the balance sheet. Opendoor isn't buying and reselling inventory fast enough, or fleshing out its iBuying model with enough higher-margin add-on services to make the company sustainable to this point. It could remain an uphill battle in a slow housing market plagued by affordability issues. The idea of an Amazon-like e-commerce experience for real estate sounds good at first, but it hasn't translated to business success. Until something changes here, Opendoor faces substantial risks that make it hard to justify buying the stock at a premium to its book value. It's like playing the lottery. Someone, somewhere, may win, but it's a terrible way to try and make money. I don't know how high Opendoor may go. The market has become quite euphoric, which bodes well for speculative behavior. Opendoor announces earnings on Aug. 5. The company needs to deliver solid, or at least improving, business fundamentals; otherwise, the stock could easily reverse course rather quickly. What I do know is that Amazon is the superior business and the better growth stock to buy right now. It's not even close. Should you buy stock in Opendoor Technologies right now? Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Opendoor Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy. Best Stock to Buy Right Now: Amazon vs. Opendoor Technologies was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
Best Stock to Buy Right Now: Amazon vs. Opendoor Technologies
Key Points A hedge fund manager believes Opendoor could go to $82 per share over the coming years. Amazon doesn't have nearly as much upside, but is already a proven winner. 10 stocks we like better than Opendoor Technologies › Wall Street thought struggling real estate e-commerce company Opendoor Technologies (NASDAQ: OPEN) was down and out. Suddenly, the stock has surged over 500% in less than a month. What's going on? A hedge fund manager recently announced an investment in the stock via social media, setting an $82 price target for shares that ignited interest in a company that has struggled in a slow housing market. But is it wiser to chase the momentum, or to look to a proven e-commerce winner in Amazon (NASDAQ: AMZN) instead? Let's take a closer look at Opendoor's prospects and determine which of these two hot growth stocks is the better buy right now. Is Opendoor Technologies poised for a comeback? Opendoor Technologies aimed to become the housing market's version of Amazon with iBuying, a process by which a company buys and resells homes through an online marketplace. The company went public via a special purpose acquisition company (SPAC) merger in late 2020, amid a period of 0% interest rates that ultimately led to high inflation and prompted the Federal Reserve to raise interest rates aggressively. The resulting spike in mortgage rates (plus already higher home prices) slammed the brakes on the housing market, creating tremendous problems for Opendoor, which took significant losses on homes it struggled to sell for a profit. Opendoor's stock has cratered since then as losses continue. Hedge fund manager Eric Jackson elaborated in his post on X that he believes the company's cost-cutting, pivot to partnering with agents, and lack of direct competitors offer a path to significant upside over the coming years, comparing it to the remarkable turnaround that Carvana achieved. Over the last month, my X impressions have exploded talking about $BTQQF $IREN and $CIFR because everyone is looking for the next $CVNA. We think we just found another. @EMJCapital has taken a position in $OPEN -- and we believe it could be a 100-bagger over the next few years.... -- Eric Jackson (@ericjackson) July 14, 2025 Eric Jackson acknowledges the risks associated with Opendoor stock, but setting such a high target for a company has spiked investor interest in the stock, sending it soaring. Amazon offers far more certainty, though it's probably not a 100-bagger anymore Amazon, one of the world's most prominent companies, is a safer stock to own. It doesn't take a rocket scientist to figure that out. But Amazon's massive $2.4 trillion market capitalization also means it has nowhere near the upside potential Opendoor does. That said, the company still has room for growth. E-commerce accounts for less than a fifth of total retail spending in the United States, and Amazon's lucrative cloud unit, Amazon Web Services (AWS), is poised to grow significantly over the coming decade and beyond as artificial intelligence (AI) drives increased cloud usage. Analysts estimate Amazon will grow earnings by an average of 21% annually over the next three to five years. Assuming the stock's valuation remains the same, that growth would double the stock price in just under four years. That's no 100-bagger, but most investors would probably take those returns with a smile. Sometimes, a bird in the hand is worth 100 in the bush Comparing two very different e-commerce stocks boils down to this: The probability that Amazon doubles in value over the next three to five years is far greater than the probability that Opendoor increases by 100 times. Opendoor's core iBuying business is steadily dragging the company down, steadily depleting the company's book value. OPEN Tangible Book Value (Quarterly) data by YCharts The iBuying process is a low-margin business model that ties up a significant amount of capital while unsold houses sit on the balance sheet. Opendoor isn't buying and reselling inventory fast enough, or fleshing out its iBuying model with enough higher-margin add-on services to make the company sustainable to this point. It could remain an uphill battle in a slow housing market plagued by affordability issues. The idea of an Amazon-like e-commerce experience for real estate sounds good at first, but it hasn't translated to business success. Until something changes here, Opendoor faces substantial risks that make it hard to justify buying the stock at a premium to its book value. It's like playing the lottery. Someone, somewhere, may win, but it's a terrible way to try and make money. I don't know how high Opendoor may go. The market has become quite euphoric, which bodes well for speculative behavior. Opendoor announces earnings on Aug. 5. The company needs to deliver solid, or at least improving, business fundamentals; otherwise, the stock could easily reverse course rather quickly. What I do know is that Amazon is the superior business and the better growth stock to buy right now. It's not even close. Should you invest $1,000 in Opendoor Technologies right now? Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
