Why Upstart Holdings Surpasses Opendoor Technologies in Coming Years

Published Date : 15/09/2025 

While Opendoor Technologies has seen a meteoric rise in the last three months, Upstart Holdings offers a more sustainable and promising investment opportunity. Discover why Upstart is the better bet for long-term growth. 

Opendoor Technologies (NASDAQ: OPEN) has been a rollercoaster ride for investors over the past three months. The stock soared an astonishing 1,400%, jumping from around $0.50 a share to more than $10 at one point. This surge was initially fueled by hedge-fund manager Eric Jackson’s prediction that Opendoor could be the next Carvana, a stock that saw a 100-fold increase after nearly going bankrupt in 2022. This argument resonated online, turning Opendoor into a meme stock, driven by high trading volume and speculative interest.

The momentum continued with real news. The prospect of the Federal Reserve lowering interest rates next week and later in the year, along with a significant management overhaul, further boosted the stock. In August, CEO Carrie Wheeler stepped down, and on August 31, Opendoor announced the appointment of Shopify’s chief operating officer, Kaz Nejatian, as its new CEO. This news sent the stock up by 80% the following day. Additionally, co-founders Keith Rabois and Eric Wu rejoined the board, and their ventures invested $40 million into Opendoor. These developments injected new enthusiasm into the stock, especially after it was on the verge of being delisted by the Nasdaq stock exchange.

However, the fundamental business conditions for Opendoor have not significantly improved. The company has never reported a full-year profit, and the housing market remains weak, leading to expected revenue shrinkage in the current quarter. This makes Opendoor a high-risk investment with a questionable business model. If you're looking for a similar stock that can capitalize on falling interest rates, Upstart Holdings (NASDAQ: UPST) is a better bet and is poised to outperform Opendoor over the next three years.

Upstart shares several similarities with Opendoor. Both companies went public around the same time in 2020 and experienced an initial surge followed by a significant downturn in 2022 due to rising interest rates and a tech stock crash. However, Upstart’s business model is more robust. Upstart is a fintech company that uses artificial intelligence (AI) to screen loan applicants, claiming significantly better results than traditional FICO scores. Once it creates a loan, Upstart typically sells it to one of its funding partners, thereby avoiding the burden of holding the debt on its books.

Upstart’s AI-driven approach has proven effective even in a high-interest-rate environment. The company’s technology has demonstrated its ability to accurately assess risk and identify creditworthy borrowers, making it a valuable asset for financial institutions. This has led to strong partnerships and a growing market share in the loan origination space. Unlike Opendoor, which relies heavily on the volatile housing market, Upstart’s diversified revenue streams and technological edge provide a more stable foundation for long-term growth.

In conclusion, while Opendoor’s recent surge is impressive, it is driven more by speculative interest and management changes rather than fundamental improvements in its business model. On the other hand, Upstart’s AI-driven approach and solid partnerships make it a more sustainable and promising investment. If you’re looking for a stock that can capitalize on falling interest rates and deliver consistent growth, Upstart Holdings is the better choice over Opendoor Technologies. 

Frequently Asked Questions (FAQS): 

Q: What is Opendoor Technologies?

A: Opendoor Technologies is an online platform that allows homeowners to sell their homes quickly and easily. The company uses technology to streamline the home-selling process, including automated valuations and online transactions.

Q: What is Upstart Holdings?

A: Upstart Holdings is a fintech company that uses artificial intelligence to improve the loan origination process. It screens loan applicants using AI, claiming better accuracy than traditional credit scoring methods, and typically sells the loans to funding partners.

Q: Why is Upstart Holdings a better investment than Opendoor Technologies?

A: Upstart Holdings offers a more sustainable business model with a robust AI-driven approach to loan origination. Unlike Opendoor, which is heavily dependent on the housing market, Upstart’s diversified revenue streams and technological edge provide a more stable foundation for long-term growth.

Q: What recent changes have affected Opendoor Technologies?

A: Opendoor Technologies has seen significant management changes, including the departure of CEO Carrie Wheeler and the appointment of Shopify’s COO, Kaz Nejatian, as the new CEO. Additionally, co-founders Keith Rabois and Eric Wu have rejoined the board, and their ventures have invested $40 million into the company.

Q: How has the Federal Reserve's interest rate policy impacted Opendoor and Upstart?

A: The prospect of the Federal Reserve lowering interest rates has positively affected both Opendoor and Upstart. However, Upstart’s AI-driven loan origination model has proven effective even in a high-interest-rate environment, making it a more resilient investment. 

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