Why Opendoor (OPEN) Shares Are Sliding Today

What Happened?

Shares of technology real estate company Opendoor (NASDAQ:OPEN) fell 22.7% in the afternoon session after the company issued a weak financial forecast for the upcoming third quarter, overshadowing its recent earnings report. The online real estate platform projected third-quarter revenue between $800 million and $875 million, a steep decline from the previous year and well below market expectations. Opendoor also guided for a return to a loss on an adjusted earnings basis. This gloomy forecast soured investor sentiment despite the company reporting better-than-expected revenue of about $1.6 billion for its second quarter. The poor outlook stemmed from a difficult home-buying environment, as high interest rates discouraged potential buyers and decreased sales.

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What Is The Market Telling Us

Opendoor’s shares are extremely volatile and have had 86 moves greater than 5% over the last year. But moves this big are rare even for Opendoor and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 9.5% on the news that the company announced it had regained compliance with Nasdaq's minimum bid price requirement, leading to the cancellation of a vote on a reverse stock split. The news removed the immediate threat of the stock's delisting from the exchange. The company consequently canceled a special shareholder meeting scheduled to vote on the reverse stock split, a move often viewed negatively by investors. This positive development occurred ahead of the company's second-quarter earnings report, which loomed as a major test following the stock's recent surge, fueled in part by its popularity among traders.

Opendoor is up 25.2% since the beginning of the year, but at $1.99 per share, it is still trading 38% below its 52-week high of $3.21 from July 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $180.34.

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