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

Company Overview - Opendoor's business model focuses on using technology to buy and sell homes, generating profits from the transactions [2] - The company was founded in 2014 and went public via a SPAC during the late 2020 housing boom [2] Recent Stock Performance - Opendoor shares have increased almost fivefold since early July, with trading volumes reaching record levels [1] - Despite the surge, the stock dropped over 20% in after-hours trading following the earnings call [1] - Prior to the recent increase, the stock price fell to as low as $0.51 in late June [1] Financial Performance - For the second quarter, Opendoor reported a revenue increase of approximately 4% to $1.57 billion, with a narrowed net loss of $29 million [4] - Revenue for the previous year was significantly lower, dropping from $15.6 billion in 2022 to $5.2 billion [2] - The company projects revenue for the current quarter to be between $800 million and $875 million, indicating a decline of at least 36% year-over-year [5] Market Conditions - The housing market has deteriorated, with persistently high mortgage rates suppressing buyer demand [6] - The company plans to acquire only 1,200 homes in the third quarter, down from 1,757 in the second quarter [5] Strategic Shifts - Opendoor is shifting its focus from iBuying to a referrals business model, which is less capital intensive [6] - This strategic shift is described as "the most important strategic shift in our history" by the CEO [6] Investor Sentiment - Hedge fund manager Eric Jackson's investment in Opendoor has contributed to the stock's recent bounce, with a belief that the stock could reach $82 [3] - Despite the stock's volatility, there is a growing interest from investors, although reactions to recent earnings were mixed [1][6]