Why Opendoor (OPEN) Shares Are Sliding Today

What Happened?

Shares of technology real estate company Opendoor (NASDAQ:OPEN) fell 7.5% in the afternoon session after it entered a correction following a period of massive, speculative gains. 

The decline follows an extraordinary surge that saw the stock gain over 900% in the last three months, fueled by what some have described as "meme-stock mania." This rapid ascent created a "volatile battleground" for the stock, which has high short interest, with about 24% of its available shares being bet against by investors. 

Despite the recent stock frenzy, the company's fundamentals present a different picture. Opendoor has scaled back on home purchases and expects its third-quarter revenue to drop between 38% and 43% year-over-year, citing elevated mortgage rates. Today's pullback suggests investors may be taking profits amid concerns that the stock's meteoric rise was unsustainable and disconnected from its financial realities.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Opendoor? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Opendoor’s shares are extremely volatile and have had 92 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 9% on the news that the company continued its rally, fueled by strong retail investor interest and an insider stock purchase, while shrugging off a negative report from a short-seller. 

The stock, which has gained "meme" and "cult stock" status, has been heavily championed by investor Eric Jackson of EMJ Capital. This surge in interest from individual traders is intensified by significant short interest, with nearly a quarter of Opendoor's publicly available shares being bet against by traders, creating volatile price swings. Adding to the positive sentiment, the company's new interim president, Shrisha Radhakrishna, recently purchased 30,000 shares, a move often interpreted as a sign of confidence. The rally persisted even after famed short-seller Citron Research issued a bearish report, calling the company a "science project in how to burn money." Investors largely brushed off the criticism, with the stock rebounding quickly after an initial dip.

Opendoor is up 289% since the beginning of the year, and at $6.19 per share, it is trading close to its 52-week high of $6.65 from September 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $515.68.

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