Opendoor Technologies' share price soared this year.
The stock trounced the S&P 500 and Nasdaq Composite.
The last year has been very eventful. That includes a post-election period in the United States that saw a new president take office. There were sweeping changes, including a volatile tariff policy and a large tax and spending law that Congress passed.
The U.S. economy also underwent changes, including showing signs of weakness, while inflation remained persistently above the Federal Reserve's 2% target.
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Yet the stock market has done well. Turning to Opendoor Technologies (NASDAQ: OPEN), how much would $1,000 have grown into over the past year?
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Opendoor Technologies' stock price has surged since July, when the price was under $1.
Over the last year, through Nov. 17, the shares have gained 355.4%. During this time, the S&P 500 index and Nasdaq Composite have returned 14.9% and 21.7%, respectively.
That means if you'd invested $1,000 a year ago, your Opendoor Technologies shares would be worth $4,340 today. During this time, your $1,000 investment in the S&P 500 would've grown to about $1,140, and you'd have about $1,210 if you'd chosen the Nasdaq Composite.
Opendoor Technologies became a meme stock, accounting for part of the stock price leap. Investors also liked the leadership changes announced in September, including hiring Shopify's (NASDAQ: SHOP) COO, Kaz Nejatian, as Opendoor's CEO.
A look at the fundamentals suggests that the stock may have gotten ahead of itself, however. Opendoor Technologies attempts to make the real estate market more efficient by buying and selling homes online.
It's a noble pursuit, but it has bought and sold fewer homes, and the company's revenue continued dropping. Third-quarter revenue fell 33.6% to $915 million, and its loss widened from $78 million to $90 million.
While it's certainly tempting to buy a stock in the hopes the price will continue to soar, long-term investors should hold off until the company starts buying and selling more homes, which should drive revenue generation.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.