Q3 Earnings Highs And Lows: Opendoor (NASDAQ:OPEN) Vs The Rest Of The Real Estate Services Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including Opendoor (NASDAQ:OPEN) and its peers.

Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.

The 14 real estate services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Opendoor (NASDAQ:OPEN)

Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Opendoor reported revenues of $915 million, down 33.6% year on year. This print exceeded analysts’ expectations by 7.8%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ homes purchased estimates and a significant miss of analysts’ adjusted operating income estimates.

“We are refounding Opendoor as a software and AI company. In my first month as CEO, we've made a decisive break from the past -- returning to the office, eliminating reliance on consultants, and launching over a dozen AI-powered products and features that demonstrate our renewed velocity. 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,” said Kaz Nejatian, CEO of Opendoor.

Unsurprisingly, the stock is down 15% since reporting and currently trades at $5.58.

Read our full report on Opendoor here, it’s free.

Best Q3: Howard Hughes Holdings (NYSE:HHH)

Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.

Howard Hughes Holdings reported revenues of $390.2 million, up 19.3% year on year, outperforming analysts’ expectations by 15.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Howard Hughes Holdings delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $82.54.

Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Offerpad (NYSE:OPAD)

Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.

Offerpad reported revenues of $132.7 million, down 36.2% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a miss of analysts’ homes purchased estimates.

Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 53.7% since the results and currently trades at $1.07.

Read our full analysis of Offerpad’s results here.

Marcus & Millichap (NYSE:MMI)

Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Marcus & Millichap reported revenues of $193.9 million, up 15.1% year on year. This print was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also logged EPS in line with analysts’ estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 8.5% since reporting and currently trades at $26.98.

Read our full, actionable report on Marcus & Millichap here, it’s free.

eXp World (NASDAQ:EXPI)

Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.

eXp World reported revenues of $1.32 billion, up 6.9% year on year. This result beat analysts’ expectations by 5.9%. It was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ transactions estimates.

The stock is down 5% since reporting and currently trades at $9.22.

Read our full, actionable report on eXp World here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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