Opendoor Technologies Stock Plummets: What Triggered This Week’s Bloodbath?
Another day, another tech stock getting mauled by the market bears. Opendoor Technologies just joined the club—here’s why investors are hitting the panic button.
The Selloff Nobody Saw Coming (Or Did They?)
No sugarcoating: Opendoor’s shares got crushed. The iBuying darling turned into a piñata this week, leaving Wall Street scrambling for explanations.
Real Estate Tech’s House of Cards?
When algorithms replace realtors, sometimes you get disruption—other times, you get a dumpster fire. Opendoor’s latest numbers suggest which camp they’re in.
Short Sellers Smell Blood
The hedge fund vultures are circling. With mortgage rates playing yo-yo and housing demand cooling, Opendoor’s ‘instant offer’ model looks suddenly vulnerable.
Another ‘innovative’ business model meets the harsh reality of balance sheets. Maybe stick to Zillow scrolling instead of stock picking this time?
Image source: Getty Images.
Bubbles always burst
The recent story around Opendoor stock really hasn't been about its underlying business. Shares were dropping earlier in 2025 as the company reported declining revenue in a difficult housing market. Opendoor caught the eye of retail investors and traders who turned it into a meme stock in July.
More than 21% of the stock's float was held by short-sellers as of mid-July. That high short interest resulted in a short squeeze. But that bubble has now burst, shaving $1 billion from Opendoor's peak market cap last month.
An improving housing environment
Opendoor reported improving second-quarter earnings this week. Revenue was back in growth mode compared to last year's second quarter, and was above the company's prior guidance. That wasn't enough to boost the stock, though, as Opendoor is still losing money, and the meme stock surge hasn't fully deflated.
Once that occurs, though, things could be looking up for Opendoor's business. A soft jobs report last week has improved the chances for Federal Reserve interest rate cuts. Mortgage rates have already dropped because of it, too.
For now, though, Opendoor says revenue will, in fact, decline sequentially in the third quarter. That might mean there's more downside in the NEAR and medium term for Opendoor stock. Investors who rode the meme wave will likely continue to bail out.
Longer-term, a strong recovery in the housing market could help Opendoor reverse course with shares marching higher again. Though that probably won't be anytime soon.
