Opendoor (OPEN) shares fell on Friday after the online marketplace for buying and selling residential real estate said its revenue tanked and loss widened on a year-over-year basis in Q3.
Even more troubling was the management’s admission that losses will balloon further in the fourth quarter. OPEN issued nearly 181 million new shares, raising dilution concerns as well.
Despite the post-earnings stumble, Opendoor stock is trading at well over 10x its price in early June, thanks to the meme stock enthusiasts who call themselves the “Open Army.”
Beneath the headline weakness, there were several updates in the company’s earnings release that warrant buying the post-earnings dip in OPEN shares.
For example, under its new chief executive – Kaz Nejatian – the San Francisco-headquartered firm now expects to achieve profitability by the end of next year.
Nejatian is making sweeping changes, including cutting external consultants and shifting to an artificial intelligence (AI) powered operating model to reduce losses over the next 12 months.
Over time, his ambition of transforming Opendoor into a streamlined marketplace for real estate transactions could drive the company’s stock price much higher from here.
For high-risk investors, Opendoor shares may be worth buying heading into 2026 as insiders have increased their exposure to the Nasdaq-listed firm over the past three months.
Since August, insiders have made three buys and no “sells.”
This indicates internal confidence in the company’s long-term prospects. Additionally, Nejatian’s entire compensation is tied to OPEN stock’s performance, suggesting he has immense faith in his turnaround strategy.
Note that Opendoor Technologies is still trading handily above its 100-day moving average (MA), which means bulls are still in control here.
Despite aforementioned positives, Wall Street recommends steering clear of Opendoor primarily because of its meme stock status.
The consensus rating on OPEN stock sits at “Hold” only with even the highest price target of $6 indicating potential downside of about 6% from current levels.
