Opendoor Technologies (OPEN) Falls Hard as Funds Turn to AI Stocks

We recently published 10 Stocks Lost This Big While Wall Street Celebrates. Opendoor Technologies Inc. (NASDAQ:OPEN) is one of the worst performers on Monday.

Shares of Opendoor Technologies dropped for a third consecutive day on Monday, losing 12.43 percent to end at $8.38 apiece as investor funds shifted to higher-yielding assets such as AI stocks and precious metals, after skyrocketing during the session.

In intra-day trading, technology stocks, particularly those benefitting from the artificial intelligence boom, took center stage on Monday after Nvidia Corp. announced a fresh $100 billion investment in OpenAI. The good news spilled over to industries expected to benefit from the AI wave, including semiconductors and data infrastructures.

Additionally, the drop suggested that investors have priced in fresh developments in Opendoor Technologies Inc. (NASDAQ:OPEN), with the return of its founders and the naming of a new chief executive to support its turnaround and revival, while continuing to take profits after surging to new heights on Thursday.

As of Tuesday, shares of Opendoor Technologies Inc. (NASDAQ:OPEN) already marked a whopping 88.3 percent gain month-to-date.

While we acknowledge the potential of OPEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.