Hudson Labs provides machine-learned forensic risk assessment tools and advanced SEC filing navigation. Our proprietary risk scores and red flags predict price collapse. Learn more on our Research & White Papers page.
Hudson Labs was predicting collapse at Opendoor as early as March 2021 when the company’s risk score, as determined by our algorithms, increased from 53 (approximately average) to 81 (very high risk).
Since that time Opendoor’s stock price has decreased from more than $20 to less than $2.
In addition to Opendoor’s high Hudson Labs Risk Score, we found multiple high severity red flags.
Red flags at Opendoor $OPEN flagged by Hudson Labs during 2021:
Onerous levels of debt and strict covenants;
Three executive resignations/dismissals during the year including the removal of a co-founder, the resignation of the Head of Legal and the resignation of the President of Homes and Services;
Multiple periods of unremediated material internal control weaknesses;
Complicated financing through subsidiaries and special purpose entities; and
A Federal Trade Commission enforcement action.
A few of the algorithmic red flags from 2021, as shown in the Hudson Labs platform: