Opendoor Shares Slide Amid Widening Losses Despite Insider Confidence

Opendoor Technologies Inc. (OPEN) shares tumbled following a disappointing third-quarter earnings report that revealed declining revenue and deepening losses. The online real estate platform posted revenue of $915 million, missing analyst estimates of $922.05 million, while its per-share loss of $0.12 exceeded the anticipated $0.07 deficit.

Investors reacted negatively to management's warning of further losses in Q4 and concerns over dilution from a 180.6 million share issuance at $6.56 per share. Despite the market skepticism, insiders have made three purchases since August without any sales, signaling confidence in new CEO Kaz Nejatian's turnaround strategy focused on AI-powered operations and cost-cutting measures.

Wall Street maintains a cautious stance with a 'Hold' rating and highest price target of $6, suggesting potential downside. Nejatian's ambitious profitability target by end-2026 hinges on successful transformation into what he describes as 'a software and AI company,' marked by office returns, consultant reductions, and AI product launches.