Opendoor Soars 18% On Report It Is Seeking $2 Billion Credit Facility

This post was originally published on this site – Opendoor Technologies (NASDAQ:OPEN) stock jumped 18% Thursday on a report by Bloomberg that said the company is in talks to secure a $2 billion credit facility to boost home buying.

Robust second-quarter results also boosted the sentiment for the stock. 

Opendoor buys homes from consumers and lists them for resale.

According to Bloomberg, the proceeds will fuel the company’s rapid acquisition of homes. The company bought a record 8,494 homes in the June quarter, up 136% sequentially.

The company had paused home acquisitions and actively sold through its inventory last year due to Covid-19.

The company announced its April-June results Wednesday, guiding revenue to come in between $1.8 billion and $1.9 billion in the ongoing quarter. It sees third-quarter adjusted EBITDA in the $15 million to $25 million range.

Revenue in the second quarter rose 59% sequentially to $1.2 billion. It sold 3,481 homes, up 41%.

Adjusted net income was $2.5 million compared to an adjusted net loss of $21 million in the March quarter.