Opendoor Technologies Inc (NASDAQ:OPEN) shares are trading lower Monday afternoon, giving back some of last month's post-earnings surge as investors potentially rethink the iBuying company's path to sustainable profits. Here’s what investors need to know.
- Opendoor Technologies stock is taking a hit today. Why is OPEN stock dropping?
Inventory Discipline Boosts Margins, Home Turnover
The online home seller sparked a sharp rally in late February after fourth-quarter results topped Wall Street expectations. Opendoor generated $736 million in revenue versus roughly $594 million expected and reported an adjusted loss of seven cents per share, narrower than the consensus 10-cent loss.
Management highlighted "structural improvements" in pricing, inventory turns and home selection. The company bought 1,706 homes in the quarter, a 46% sequential increase, while the share of properties listed longer than 120 days fell to 33% from 51%, helping stabilize unit economics even as the business still posted a sizable GAAP net loss linked to debt extinguishment.
Opendoor Forecasts Revenue Decline, EBITDA Loss
Guidance remains cautious. Opendoor sees first-quarter revenue declining about 10% year over year and is forecasting an adjusted EBITDA loss in the low-to-mid-$30 million range, though it expects to exit the period with its strongest contribution margin since mid-2024.
With broader markets on Monday navigating higher Treasury yields, firmer oil prices and geopolitical risk tied to conflict in the Middle East, Opendoor's pullback suggests investors still want clearer evidence that its capital-intensive model can compound profits through the housing cycle.
200-Day Average Climbs As Trends Converge
The 20- and 50-day moving averages fell through fall 2025, then turned sharply higher with the rally before recently flattening and drifting lower as momentum cooled.
The longer-term 200-day average has been climbing steadily since late summer, and all three moving averages are now converging in the mid-single digits, signaling a moderated but still improved longer-term trend.
OPEN Shares Fall Monday Afternoon
OPEN Price Action: Opendoor Technologies shares were down 7.20% at $5.03 at the time of publication on Monday, according to Benzinga Pro data.
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