Why Opendoor Stock Dropped 12% in January

Shares of Opendoor Technologies (NASDAQ: OPEN) banal fell 12% successful January, according to information provided by S&P Global Market Intelligence. There wasn't immoderate quality circumstantial to Opendoor's business, but the banal had soared connected retail capitalist sentiment, and it's been dilatory coming backmost to world arsenic it gets person to the company's adjacent net report.

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Opendoor is utilizing integer exertion to disrupt the existent property industry. Its main concern is iBuying, oregon buying up groups of homes, fixing them up, and reselling them. However, it has respective ancillary businesses, including a marketplace and mortgages, and it envisions being a "one-stop shop" for each a buyer's needs.

As you mightiness imagine, concern has been pugnacious successful the high-interest complaint environment. People who ain houses aren't selling due to the fact that they don't privation to get backmost into the marketplace and instrumentality connected a precocious mortgage. There's little inventory for those who bash privation to buy, keeping location prices high. Although involvement rates person started to travel down, the lodging marketplace has remained stubbornly pressured.

Opendoor's results person been disappointing implicit the past fewer years arsenic it navigates a challenging environment. Revenue declined 34% twelvemonth implicit twelvemonth successful the 2025 3rd 4th to $913 million, which is rather debased considering the institution sells houses. It sold 2,568 homes, down from 3,615 the twelvemonth before, and it ended the 4th with 3,139 homes successful inventory, down from 6,288 the twelvemonth before. Gross borderline fell from 7.6% to 7.2%, and it reported a $61 cardinal nett loss.

Opendoor banal had been successful the dumps, but retail investors pushed it higher successful 2025. The terms popular led to a CEO change, and the caller CEO, Kaz Nejatian, has laid retired a far-reaching program to crook things astir contempt the grim environment. The program has 3 main components, which are to standard acquisitions, velocity up turnover, and go much operationally efficient. He plans to marque much usage of artificial quality (AI) to velocity things up, and helium wants to absorption connected measurement alternatively of spread.

Opendoor banal has remained elevated since the CEO switch, but it's been dropping dilatory arsenic it gets person to the fourth-quarter net report. The banal is rather cheap, trading astatine 0.9 times trailing 12-month sales, but the terms matches the risk. Expect the terms to leap if the institution has affirmative quality for investors erstwhile it releases fourth-quarter net adjacent week.