• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Opendoor stock plunges 21% after weak forecast: could more downside be ahead?

by August 7, 2025
by August 7, 2025

Opendoor stock (NASDAQ: OPEN) took a major hit on Wednesday, as it plunged nearly 21% after a disappointing Q2 earnings report and a gloomy forecast for the next quarter.

Shares dipped below $2 during the session, giving back a big part of the wild gains it racked up during last month’s meme-stock surge.

The sharp sell-off shows how quickly the mood can change when investors shift their focus back to the company’s actual numbers.

Opendoor is feeling the heat. Despite posting $1.6 billion in second-quarter revenue, up slightly from last year, investors weren’t impressed.

The company also reported a $29 million net loss, but it was the third-quarter guidance that really sent the stock tumbling. Opendoor expects revenue to drop sharply, landing somewhere between $800 million and $875 million.

That’s a 36% slide from a year ago, and it speaks volumes about how much the cooling housing market is hurting its business. With mortgage rates still high and buyers sitting on the sidelines, the company is bracing for a tough stretch.

Opendoor stock: Margins down, doubts up

Investor nerves were rattled further during the earnings call when CEO Carrie Wheeler described the current backdrop as a “challenging macro environment” and revealed the company is cutting back on marketing spend to preserve cash.

She also spoke about Opendoor’s bigger shift from being just a home-flipping platform to more of a “Product to Platform” model, working more with real estate agents to broaden its services.

But that pivot raised fresh concerns, as big strategic changes like this often come with execution risks.

The numbers didn’t do much to calm fears either. Opendoor reported a negative EBIT margin of 6.5%, $279 million in negative operating cash flow, and liabilities of over $1 billion.

On top of that, the company is racing to avoid being delisted from the Nasdaq. A special shareholder vote on a reverse stock split aimed at lifting the stock price above Nasdaq’s minimum was recently delayed until August 27, only adding to the sense of uncertainty.

Price nears key support level

On the technical side, Opendoor’s steep drop to around $1.99 during the session brought it dangerously close to a key support level at $1.87.

Momentum indicators aren’t offering much comfort either, with a bearish MACD and the stock hugging the lower end of its Bollinger Band, the signals point to continued downside pressure.

Meanwhile, sky-high implied volatility in the options market suggests investors are bracing for more turbulence. In sharp contrast, other real estate tech players like Zillow managed to hold steady, even posting modest gains on the day.

That split highlights just how shaky Opendoor’s recent meme-fueled rally was and how much doubt still lingers around its ability to weather a tough housing market while pivoting to a new business model.

The post Opendoor stock plunges 21% after weak forecast: could more downside be ahead? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Why Upstart stock tanked on Q2 earnings and why it’s a raging buy here
next post
Would Superman Bring Coffee to the Movies?

Related Posts

Banijay to acquire majority stake in Tipico creating...

October 28, 2025

Cathie Wood warns investors to brace for correction,...

October 28, 2025

European markets open mixed on Tuesday: FTSE opens...

October 28, 2025

Entry and Midnight Foundation launch integration to unite...

October 28, 2025

Elon Musk challenges Wikipedia with Grokipedia, his AI-driven...

October 28, 2025

Novartis shares fall as profit lags estimates; downside...

October 28, 2025

Nio stock price forecast: is it safe to...

October 28, 2025

IBEX 35 Index has soared: top Spanish stocks...

October 27, 2025

Australia commits A$83.5 million to boost cyber resilience...

October 27, 2025

Honda joins India’s clean energy drive with OMC...

October 27, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Understanding Medicaid

    October 28, 2025
  • Colonel Harwood’s Legacy: The Engineer Who Built an Economic Institution

    October 28, 2025
  • Digi International Announces Digi XBee 3 Global LTE Cat 4 Cellular Modem for IoT Applications

    October 28, 2025
  • Trumponomics Is Pushing Young Voters Into Socialism

    October 28, 2025
  • Banijay to acquire majority stake in Tipico creating a European gaming powerhouse

    October 28, 2025
  • Cathie Wood warns investors to brace for correction, backs this unlikely winner

    October 28, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,033)
  • Editor's Pick (297)
  • Investing (185)
  • Stock (2,064)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

CAC 40 index forecast: here’s why it...

March 6, 2025

Beijing intensifies oil stockpiling amid global supply...

October 7, 2025

Why did airline stocks flying on Tuesday?

August 13, 2025