Shares in Opendoor (OPEN) stock plummeted this past week by over 20%, after missing Q3 estimates and its new CEO making an interesting promise. OPEN stock fell 23% to $5.02 in Friday’s premarket trading. This year, OPEN has rallied by more than 300%, but the Friday crash put a dent in those gains.
The homebuying platform reported an adjusted loss of $0.12 per share for the third quarter, worse than Wall Street’s forecast of a $0.08 loss. Revenue came in at $915 million, down 34% year over year but still ahead of expectations for $850 million. In addition, adjusted EBITDA showed a $33 million loss, wider than the projected $24.4 million dip.
CEO Kaz Nejatian’s recent promise to build an AI robot with Opendoor also seemed to scare off investors. “We are re-founding Opendoor as a software and AI company,” Nejatian said. “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.” Nejatian’s plan focuses on reaching positive adjusted income by late 2026 through higher transaction volumes, sharper pricing models, and “ruthless” cost control. The latter seems to be the key catalyst for the investor selloff that has seen OPEN fall over 20% in the last five days.
Also Read: Tesla (TSLA) Dips 4% After Musk’s $1T Payment Plan is Approved
Nejatian also warned that its next-quarter performance will reflect decisions made under its previous leadership. Opendoor expects an adjusted EBITDA loss between the high-$40-million and mid-$50-million range, roughly in line with last year. “Our results in the upcoming quarter are largely the outcome of us managing decisions that were made several months ago,” the company said. “We’re focused on making the right long-term decisions for the business, not managing to short-term guidance.”
At the time of this press release, Opendoor stock is trading within its 52-week range and above its 200-day simple moving average. The middle ground appears to be headed towards the lower half of that moving average, however, especially with a hard hit Q4 earnings report due at the end of this year, per OPEN’s CEO. Many analysts have lowered their forecasts for OPEN stock, with CNN analysts providing a bearish 84.40% median price decline in their latest forecast.