Why Opendoor Technologies Stock Is Plummeting Today
Key Takeaways
The research indicates that What's particularly noteworthy is S of Opendoor nologies (OPEN -10. 75%) are falling on Tuesday, down 6% as of 3:03 p. Furthermore, ET and dipping as...
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3 min read
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real estate
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July 22, 2025
03:42 PM
The Motley Fool
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The re indicates that What's particularly noteworthy is S of Opendoor nologies (OPEN -10. 75%) are falling on Tuesday, down 6% as of 3:03 p
Furthermore, ET and dipping as low as 16, in today's market environment. 8% earlier in the day
This leads to the conclusion that drop comes as the S&P 500 (^GSPC 0. 06%) and Nasdaq Composite (^IXIC -0. 39%) were little changed (which is quite significant)
Opendoor's stock is retreating after its recent monster run
The stock appears to be the meme stock, and its ascent has been largely driven by a surge of retail investor activity
The meme stock Opendoor nologies, a nology company that automates the buying and selling of real estate, has become the meme stock (noteworthy indeed)
On the other hand, Retail investors, especially those from Reddit's Wallstreetbets subreddit, have driven the stock up nearly 440% in the last month
The data indicates that run started after hedge fund manager Eric Jackson of EMJ Capital publicly announced his firm had taken a position in Opendoor, touting it as a potential "100-bagger" stock
Market analysis shows timing comes at a critical time for Opendoor
The company's stock was trading under $1 and had received a delisting warning from Nasdaq -- companies that can't keep their stock price above $1 risk being kicked off the exchange
Image source: Getty Images
Furthermore, Risks remain for Opendoor Despite the enthusiasm, Opendoor has significant financial troubles
Furthermore, Conversely, The company's top line has plummeted from its height in 2022, in today's market environment
The company's current annual run rate is well under a third of its 2022 sales
Opendoor has also never turned a fit and has significant negative cash flow (this bears monitoring)
This leads to the conclusion that re are some positive signs as of late, including a quarter-over-quarter uptick in its top and bottom lines from its Q4 2024 to Q1 2025, as well as positive movement in its earnings before taxes, interest, depreciation, and amortization (EBITDA)
Its meme is based on the belief that this momentum can continue, and the company can execute a turnaround
Nevertheless, I'm not so sure, and I would avoid the stock, especially after this incredible run
The Author Johnny Rice is a contributing Motley Fool Analyst
Prior to The Motley Fool, Johnny contributed to various financial publications, given the current landscape
Moreover, He holds a B
From the University of San Diego and an MFA from A, given the current landscape
Nevertheless, Fun fact: Johnny is also an actor and filmmaker
TMFJohnnyRice Johnny Rice has no position in any of the stocks mentioned
The evidence shows Motley Fool has no position in any of the stocks mentioned
Nevertheless, The Motley Fool has a disclosure policy.
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