Opendoor (OPEN) stock plunged more than 20% last week after the company missed expectations for its third quarter and made interesting promises from its new CEO. OPEN stock fell 23% to $5.02 in pre-market trading on Friday. OPEN is up more than 300% this year, but Friday’s selloff put a damper on that rise.
The home buying platform reported an adjusted loss of $0.12 per share for the third quarter, which was below Wall Street’s expectations for a loss of $0.08. Sales were $915 million, down 34% from the same period last year, but still above expectations of $850 million. Additionally, adjusted EBITDA showed a loss of $33 million, exceeding the expected decline of $24.4 million.
CEO Kaz Nejatian’s recent promises to develop Opendoor and AI robots also appear to have spooked investors. “We are re-establishing Opendoor as a software and AI company,” Nejatian said. “Our business succeeds not by charging high spreads or hoping macro will save us, but by building technology that makes buying, selling, and owning a home easier and more enjoyable.” Nejatian’s plan is focused on achieving positive adjusted profits by the second half of 2026 through increased trading volume, a sharper pricing model, and “ruthless” cost management. The latter appears to have been the main catalyst for the decline for investors, which has seen OPEN drop more than 20% over the past five days.
Nejatian also warned that next quarter’s results will reflect decisions made under the previous management team. Opendoor expects its adjusted EBITDA loss to be in the high-$40 million to mid-$50 million range, about the same level as last year. “Our results for the upcoming quarter are primarily a result of managing decisions made several months ago,” the company said. “We are focused on making the right long-term decisions for the business, rather than following short-term guidelines.”
in At the time of this press release, Opendoor stock is trading within a 52-week range and above its 200-day simple moving average. But according to OPEN’s CEO, that midpoint appears to be heading toward the lower half of the moving average, especially since the fourth-quarter earnings report scheduled for the end of this year will take a big hit. Many analysts have revised down their forecasts for the OPEN stock, with CNN analysts’ latest forecast indicating a bearish price decline of 84.40%.
