In a world radically changed by the Covid-19 pandemic, online real estate technology company Opendoor Technologies (NASDAQ:OPEN) offers a well-defined value proposition. Yet, the market doesn’t seem to appreciate this as OPEN stock is faltering.

There’s no question that the Covid-19 pandemic accelerated the shift from offline to online in multiple markets. In 2021, buying and selling homes online is not only possible, but normalized.

If you’re confident that confident that this change in consumer behavior is here to stay, then you might consider a long position in OPEN stock.

And if you’ve been waiting for a buy-the-dip moment, then you’re in luck as downward price pressure could signal a prime buying opportunity for bold contrarian investors.

A Closer Look at OPEN Stock

Let’s rewind the clock a bit. Back in September, Chamath Palihapitiya brought an exciting company to the public through special purpose acquisition company (SPAC) Social Capital Hedosophia II, which traded as IPOB stock.

That company merged with OpenDoor Technologies (NASDAQ:OPEN), and thus OPEN stock was born.

Palihapitiya’s claim was that OpenDoor, which is an online marketplace for buying and selling houses, would be his “next 10x idea.” So far, however, the investors haven’t seen anything close to 10x returns.

Here’s how it actually played out. Social Capital Hedosophia II shareholders voted to approve the merger with OpenDoor on Dec. 17., 2020, and OPEN stock commenced trading on the Nasdaq Exchange on Dec. 21.

On that first day of public trading, the stock hit a peak of $32.39. The market’s enthusiasm lasted a little while longer, with the shares reaching a 52-week high of $39.24 on Feb. 11, 2021.

Unfortunately, it was all downhill after that. OPEN stock slid during the next four months, landing at $16.37 on June 4.

That’s problematic for anyone who happened to buy the stock in the $30’s. If you’ve been sitting on the sidelines, however, then you may have a chance to start a position at a highly favorable price point.

Real Estate, Reimagined

Established in 2014, Opendoor had an ambitious vision from the outset. Essentially, the company sought to reimagine real estate as we know it by digitizing the process of buying and selling homes.

This concept probably sounded off-putting to some folks in 2014. In the age of the Covid-19 pandemic, however, a digital real estate platform makes a lot more sense.

In a recent letter to the company’s shareholders, Opendoor made a strong case that buying and selling homes online is now not only possible, but culturally accepted.

Here are a couple of stats to back that claim up. A recent survey commissioned by Opendoor found that 75% of buyers want
digital options in real estate.

Moreover, 71% of sellers were likely to consider selling their home using a digital platform. Clearly, this isn’t just a passing trend anymore; a shift to online real estate is likely to endure, and may even be permanent.

Proven Results

We can talk all day long about cultural shifts, but the investors undoubtedly want to know if any of this translates into more homes sold online, and more revenues generated.

The answer is a definite yes. I’ll let Opendoor’s first-quarter 2021 results prove the point:

• Revenues of $747 million, up 200% quarter-over-quarter (QoQ)
• 2,462 homes sold, up 190% QoQ
• 3,594 homes purchased, up 78% QoQ
• Inventory balance grew to $841 million, up 80% QoQ
• Expanded to 27 markets at end of the quarter, with six launches

Looking ahead, the company expects that 2021’s second quarter “will set an all-time company record for quarterly home acquisition volumes.”

The Bottom Line

Today, OPEN stock is truly a dip buyer’s delight. The share price is down while quarterly revenues are up.

In other words, there’s a mismatch between the share price and the company’s financials.

And with that, Opendoor truly is reinventing real estate – even if the market doesn’t appreciate it quite yet.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.