Opendoor Stock Slides Tuesday Morning: What's Weighing On Shares?

Opendoor Technologies Inc (NASDAQ:OPEN) shares are sliding on Tuesday as investors continue to weigh whether the iBuying company can reliably turn a profit after its recent earnings report. Here’s what investors need to know.

• Opendoor Technologies stock is showing notable weakness. Why is OPEN stock dropping?

Investors Await Clear Profit Path

Opendoor’s recent earnings report revealed a revenue of $736 million, surpassing expectations of roughly $594 million, and an adjusted loss of 7 cents per share, which was narrower than the anticipated 10-cent loss.

Despite this, management expressed caution, forecasting a 10% year-over-year decline in first-quarter revenue and an adjusted EBITDA loss in the low-to-mid $30 million range.

The company also highlighted structural improvements in its operations, including a 46% sequential increase in home purchases and a reduction in the share of properties listed for over 120 days from 51% to 33%.

With higher Treasury yields, rising oil prices and ongoing tensions in the Middle East weighing on markets, Opendoor's drop this week suggests investors still need more proof that its capital-heavy business can reliably generate profits throughout the housing cycle.

Stock Trading Below Key Moving Averages

OPEN stock is currently trading below its 20-, 50- and 200-day simple moving averages (SMAs), indicating a bearish trend in the short to medium term.

OPEN Shares Slide Tuesday

OPEN Price Action: Opendoor Technologies shares were down 5.15% at $4.78 at the time of publication on Tuesday, according to Benzinga Pro data.

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