Why Opendoor (OPEN) Stock Had a Very Bad Thursday

TLDR

• Opendoor stock fell over 12% Thursday as a broad market selloff hit high-beta names hard
• Technically, OPEN trades well below all major moving averages, with a death cross in place since March
• Analysts are divided sharply, with price targets ranging from $1.40 to $8.00; consensus is Hold
• Q2 earnings are due August 4, with analysts expecting a wider loss and revenue down from $1.57B to ~$900M year-over-year
• Homebuilder sentiment dropped unexpectedly, and high mortgage rates continue to pressure Opendoor’s home-flipping model

Opendoor Technologies (OPEN) fell more than 12% on Thursday, dropping to around $3.85, as a broad market selloff hit high-beta names harder than most. The real estate sector overall barely moved, making OPEN’s slide stand out.

Opendoor Technologies Inc., OPEN

The drop came as investors reacted to fresh signs of strain in the U.S. housing market. A surprise fall in homebuilder sentiment and stubbornly high mortgage rates are clouding demand for Opendoor’s home-flipping business.

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