Why Opendoor Technologies Stock Plummeted Today

Key Points

• Opendoor stock was up more than 15% before falling nearly 9% on the day.

• Initial enthusiasm from Friday's rate cut news gave way to caution.

• 10 stocks we like better than Opendoor Technologies ›

Shares of Opendoor Technologies (NASDAQ: OPEN) fell on Monday, finishing the day down 8.6%. The drop came as the S&P 500 (SNPINDEX: ^GSPC) lost 0.4% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.2%.

While Opendoor stock finished down nearly 9%, it was initially up more than 15% earlier in the day on continued enthusiasm from Friday's rate cut news, before dropping as investors consider what the future might hold.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Rate cuts could be coming, but it's unclear how many

Federal Reserve Chairman Jerome Powell gave a speech on Friday that painted a somewhat mixed picture of the economy. Ultimately, however, Powell said that the economy was resilient, and although he didn't say so explicitly, he seemed to indicate a rate cut would be coming in September.

This sent markets higher, especially for riskier investments like Opendoor stock. However, today, that enthusiasm began to fade as investors faced the reality that there are still some significant uncertainties. How many rate cuts, how large they will be, and when they will come is very much up in the air still.

Image source: Getty Images.

This is especially impactful for Opendoor stock because the company's top and bottom lines are heavily tied to interest rates. Lower interest rates could allow the company to refinance its significant debt, reducing costs. They would also likely help spur consumer demand for housing and drive sales.

Opendoor is still a risk

Opendoor has a compelling narrative driving its meme status -- that it could transform itself through artificial intelligence (AI) using its proprietary data. I think there is something to this idea, but I would still stay away from Opendoor stock. The company is operating in the red, relies heavily on debt, and the real estate market does not look particularly promising, regardless of rate cuts.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,657!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,993!*

Now, it’s worth noting Stock Advisor’s total average return is 1,057% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.