TLDR
- Opendoor stock fell over 12% Thursday as a broad market selloff hit high-beta names hard
- Technically, OPEN trades well below all major moving averages, with a death cross in place since March
- Analysts are divided sharply, with price targets ranging from $1.40 to $8.00; consensus is Hold
- Q2 earnings are due August 4, with analysts expecting a wider loss and revenue down from $1.57B to ~$900M year-over-year
- Homebuilder sentiment dropped unexpectedly, and high mortgage rates continue to pressure Opendoor’s home-flipping model
Opendoor Technologies (OPEN) fell more than 12% on Thursday, dropping to around $3.85, as a broad market selloff hit high-beta names harder than most. The real estate sector overall barely moved, making OPEN’s slide stand out.
Opendoor Technologies Inc., OPEN
The drop came as investors reacted to fresh signs of strain in the U.S. housing market. A surprise fall in homebuilder sentiment and stubbornly high mortgage rates are clouding demand for Opendoor’s home-flipping business.
The selling was not just macro-driven. Analyst caution over profitability and the risk of future share dilution added fuel to the move, particularly with earnings approaching on August 4.
OPEN’s year-to-date performance now sits at -24.87%, and the stock is trading well off its 52-week high of $10.87, though it did post a 75% gain over the past 12 months from its low of $1.70.
The Chart Gave Buyers Nothing to Hold Onto
Coming into Thursday, the technical setup was already weak. OPEN was trading 16.1% below its 20-day moving average, 15.7% below its 50-day, 19.5% below its 100-day, and 31.6% below its 200-day.
A death cross formed back in March when the 50-day moving average crossed below the 200-day. That pattern continues to act as overhead resistance, capping any rallies before sellers step in.
MACD sits below its signal line with a negative histogram, pointing to fading upside pressure. That makes any short-term bounce vulnerable to being sold quickly.
Key resistance is sitting at $4.60, near the 50-day moving average. The nearest support level is around $4.28.
Benzinga Edge gives OPEN a momentum score of 70.16, flagging it as bullish on longer-term trends. But when momentum is the main thesis rather than fundamentals, losing key moving average levels can trigger fast selling.
Earnings Due August 4 With More Pain Expected
Q2 results land on August 4. Analysts are forecasting a loss of 3 cents per share, worse than the 1 cent loss in Q2 last year.
Revenue is expected to come in around $900.86 million, down sharply from $1.57 billion in the same period a year ago.
Year-over-year declines on both revenue and earnings are keeping cautious investors on the sidelines until there is a clearer sign the trajectory is stabilizing.
The analyst community is split. The consensus rating is Hold, with an average price target of $5.33.
Keefe Bruyette has an Underperform rating with a $2.65 target. Alliance Global Partners initiated coverage with a Buy and an $8.00 target. Citigroup is the most bearish, maintaining a Sell with a $1.40 target.
On the positive side, Opendoor has shown an ability to generate solid cash flow and reduce debt, which gives it some room to manage through a difficult housing cycle.
Opendoor stock was trading at $3.85 at the time of publication Thursday, down 12.10% on the day.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
