The steady bull pushing up Offerpad Solutions Inc. (NYSE: OPAD) saw somewhat of a reversal this weekend, in the after-market. Friday’s steady climb of 12.7% was followed by a jolting fall of 6.73%, erasing much of the day’s gains. The impressive OPAD growth persisted throughout all of last week, climbing up 41.4% from $3.89 to an impressive $5.50. This growth comes despite the weekend fall, showcasing that the swing remains a minor jolt interrupting the raging bull.
OPAD Background and Prospects
The US-based real estate player, which began trading in December 2020, remained mostly stable for its course of trade history. Its downward swing traces to December 2021, a full year after coming public to the stock markets. Last month brought the upturn for OPAD, which has been in full swing till present.
On Friday, Offerpad Solutions announced winning three of the eighth annual Stevie Awards for the year 2022. These were specified as follows:
- Gold Stevie for Sales Distinction of the Year
- Silver Stevie for Online Sales Team of the Year
- Bronze Stevie for Front-Line Customer Service Team of the Year
These awards come as a reinforcement to the positive experience and quality service Offerpad strategically commits to. Furthermore, it highlights the credibility of the brand, along with its value, offering optimism to its investors about future prospects. Given the nature of its business model, Offerpad’s success is highly sensitive to its performance in the market. Perception by consumers and the market in general heavily determine its growth potential along with the sustainability.
US Real Estate Industry and Implications for OPAD
Given that Offerpad has been on a growth spurt, and the recipient of credible awards, weekend plummet could potentially be attributable to broader macroeconomic factors. New data released by the US Bureau showcases soaring costs for house construction, reaching a staggering 22%. Given the inelastic nature of housing, these levels of inflation in the industry could pose problems on a wider scale. Offerpad, despite its excellence in quality and sales, could face the brunt of these macroeconomic disruptions.
The raging bull, OPAD took a minor hit this weekend, falling by a moderate 6.73%. This comes despite the winning of three Stevie awards on Friday, attesting to the excellence of its business model and strategy. The fall could be linked to a wider disruption such as inflation impacting the housing sector.