What happened
The stock market was having a volatile day on Monday, with all three major market indices posting major declines. As of 10:45 a.m. ET, the S&P 500 benchmark index was down by more than 2% on the day and is now officially in correction territory, down more than 10% from its high point.
Real estate technology company Opendoor (OPEN 0.47%) was a big underperformer. The iBuying leader was down by 11% for the day and has now reached a fresh all-time low.
Image source: Getty Images.
So what
There isn't any company-specific news fueling today's decline. Rather, the recent market decline has disproportionately affected speculative, high-growth stocks, and Opendoor certainly fits into that category.
Now what
Of course, nobody enjoys watching their stocks plunge. Opendoor's 52-week high is above $39, so the current price of about $8.50 represents a big pullback.
However, if you're a believer in the long-term potential of the iBuying business as the future of real estate, now could be a great opportunity. Opendoor now trades for less than the $10 SPAC share price it traded for before Chamath Palihapitiya announced his Social Capital firm would take the company public. There are roughly $2 trillion worth of residential home sales in the U.S. each year, and if Opendoor can capture even a couple percentage points of that, the current $5 billion market cap could end up being a steal.
