- Opendoor stock dropped over 20% after reporting weaker-than-expected Q3 earnings.
- The company posted a $0.12 adjusted loss per share, larger than the forecasted $0.08 loss.
- Revenue declined 34% year-over-year to $915 million but surpassed estimates.
- New CEO Kaz Nejatian outlined a shift toward AI-driven software and cost control to reach profitability by 2026.
- Analysts have lowered price forecasts, predicting significant further stock declines.
Shares of Opendoor (OPEN) fell sharply last week, declining more than 20% after the company missed third-quarter earnings estimates and its new CEO presented a major strategic shift. On Friday, OPEN stock dropped 23% to $5.02 in premarket trading. Despite a year-to-date rally exceeding 300%, the recent selloff erased some of those gains.
The homebuying platform reported an adjusted loss of $0.12 per share for Q3, worse than Wall Street’s forecast of a $0.08 loss, according to estimates. Revenue reached $915 million, down 34% from the previous year but above the projected $850 million, as shown in financial data. Adjusted EBITDA recorded a loss of $33 million, a wider gap than the anticipated $24.4 million deficit.
CEO Kaz Nejatian announced plans to reposition Opendoor as a software and Artificial Intelligence (AI) company. He stated, “We are re-founding Opendoor as a software and AI company. Our business will succeed by building technology that makes selling, buying, and owning a home easier and more joyful—not from charging high spreads and hoping the macro saves us.” The strategy targets positive adjusted income by late 2026 through increased transaction volume, improved pricing models, and strict cost controls, which appears to have contributed to the recent investor selloff.
Nejatian also noted that the company’s upcoming quarterly results will reflect past leadership decisions. Opendoor expects an adjusted EBITDA loss between $48 million and $55 million, roughly consistent with the same quarter last year. The company emphasized its focus on long-term decisions rather than short-term guidance.
At the time of the latest update, Opendoor stock traded within its 52-week range and above its 200-day simple moving average. However, the stock’s trajectory points toward the lower half of this range, especially with an anticipated difficult Q4 earnings report, as indicated by OPEN’s CEO. Multiple analysts have lowered their price targets, with some forecasting a median price decline of 84.40%, according to CNN analysts.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitwise Solana ETF Hits $545M Inflows Amid BTC Outflows
- Ethereum’s Fusaka Upgrade Activates Dec to Boost Scalability
- Bitcoin OG Whales Dump Over 1,000 BTC/Hour, Price May Drop to $89,600
- BRICS Pushes De-Dollarization but Faces Major Market Hurdles
- Bitcoin Plunges After Record High; JPMorgan Predicts Major Boom
