The pandemic has had a huge impact on consumer behavior, which has helped transform the housing market. Opendoor Technologies (NASDAQ:OPEN) is expanding and moving towards acquiring more properties. OPEN stock has had a wild ride over the past year. The stock was trading for $11.57 on July 8, 2020, and hit an all time high of $39.24 in February. It opened today at $15.62.

I am impressed with Opendoor’s unique business model and believe the stock will go higher. At the current level, it is a buy. With that in mind, let’s take a look at the investment case for OPEN stock.

Cutting Edge Business Model

There are a lot of things that set Opendoor apart from other companies in the housing market. The company’s cutting edge technology will likely disrupt the industry and place Opendoor at the top. The company provides a hassle-free process for selling a home with fees on par with the market. The company intends to expand its geographic reach in the coming months.

E-commerce is only getting bigger; buying and selling homes online is here to stay and will be further normalized in the coming years. The company has made the process of buying and selling homes quick and convenient without actually having to leave your current home. The power of Opendoor’s algorithms is reflected in recent earning results.

Opendoor currently operates in 27 markets, but there is tremendous upside potential for the future.

Solid Q1 Results

The Q1 2021 results show that the company managed to generate sales and revenue despite the Covid-19 pandemic. The pandemic was hard on the housing market, but the company is slowly picking up.

Total number of homes sold in the quarter stood at 2,462, up 190% from the previous sequential quarter. Meanwhile, the total number of homes purchased was 3,594, up 78%. Finally, revenue stood at $747 million, up 200%.

For the second quarter, the company expects revenue between $1.025 billion and $1.075 billion. Further, it expects the adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to be between negative and positive $5 million.

While the housing market begins to cool, Opendoor has expanded geographically. It has carefully planned its expansion and is ready to meet sellers as the trends caused by the pandemic begin to reverse. The iBuying model, which uses technology to make instant offers for homes, will draw users in the coming quarters.

Bottom Line on OPEN Stock

The iBuying business has long term viability. If you can buy or sell a house within minutes without worrying about agents or incurring additional expenses, why would you opt for the traditional route?

The company has a $9.1 billion market capitalization, and at its current price, the stock looks cheap. It could soar to new highs as we return to normalcy.

As the company continues to enter new markets, the revenue will rise, which will help cut down on losses. Housing is a massive market, and this is only the beginning. By offering additional enhanced services and reducing selling and administrative costs, the company can go a long way.

I believe that the Q2 results will take OPEN stock higher. This dip is the perfect opportunity to add it to your portfolio.

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.