Wall Street sets Opendoor Technologies' stock price for the next 12 months

Core Viewpoint - The share price of Opendoor Technologies (NASDAQ: OPEN) has experienced significant gains recently, but analysts on Wall Street are predicting a potential steep decline in the near future due to various challenges facing the company [1][5]. Group 1: Stock Performance - Opendoor's stock surged 39% on a recent trading day, closing at $5.01, with a weekly gain of over 51% and a year-to-date increase of 215% [1][3]. - The stock's rise has been attributed to a leadership change, a focus on artificial intelligence, and increased interest from retail investors [1][3]. Group 2: Analyst Sentiment - Wall Street analysts have a bearish outlook on Opendoor, with an average 12-month price target of $1.02, indicating nearly 80% downside from current levels [5]. - Among seven analysts, four rated the stock as 'Sell', two as 'Hold', and only one as 'Buy', leading to a consensus rating of 'Moderate Sell' [5]. Group 3: Company Challenges - Analyst Ryan Tomasello from Keefe, Bruyette & Woods downgraded Opendoor from 'Market Perform' to 'Underperform', citing widening losses, weaker-than-expected guidance, and strategic uncertainty [7]. - Q2 revenue rose 4% year-over-year to $1.567 billion, but contribution profit missed estimates, and Q3 revenue guidance of $800 to $875 million fell short of expectations [7]. - Citi analyst Ygal Arounian reduced Opendoor's price target from $1.40 to $0.80, highlighting pressures in the housing market, operational challenges, and a heavy debt load of $2.3 billion [8].