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Opendoor tanks after earnings as CEO thanks new investors for 'increased visibility'

1. Opendoor shares increased nearly fivefold since July but dropped over 20% after hours. 2. CEO highlighted strategic shift away from iBuying to referrals business model. 3. Projected revenue decline of up to 36% year-over-year in the upcoming quarter. 4. Hedge fund manager Eric Jackson predicts potential stock price increase to $82. 5. Persistently high mortgage rates are suppressing buyer demand in housing market.

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FAQ

Why Bearish?

Despite initial stock surge, ongoing high mortgage rates and projected revenue decline indicate sustained challenges. Historical cases like Zillow's exit from iBuying model highlight risks in market shifts.

How important is it?

The company's strategic shift and revenue projections directly impact investor sentiment and stock performance.

Why Short Term?

Immediate concerns about revenue projections and investor sentiment could negatively influence performance in the next quarter.

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