Why Opendoor (OPEN) Stock Is Falling Today

Core Insights - Opendoor's shares fell 3.7% after reporting mixed third-quarter results, with revenue exceeding expectations but earnings missing Wall Street estimates [1][2] Financial Performance - Revenue declined 33.6% year-over-year to $915 million, surpassing analyst forecasts [2] - The company reported a GAAP loss of $0.12 per share, missing the consensus estimate of a loss of $0.07 per share [2] - Adjusted EBITDA for the quarter also fell short of expectations [2] - Despite the current quarter's performance, Opendoor provided optimistic guidance for the fourth quarter, projecting adjusted EBITDA of $45 million at the midpoint, significantly above analysts' forecasts [2] Market Reaction - The stock market's reaction indicates that investors prioritized the earnings miss over the positive forward guidance [2] - Opendoor's shares have shown extreme volatility, with 98 moves greater than 5% over the past year, suggesting that the market views this news as significant but not fundamentally altering its perception of the business [4] Previous Performance Context - Prior to the third-quarter results, the stock dropped 5.4% as investors anticipated a significant sequential decline in revenue and a return to negative earnings [5] - Management had projected third-quarter revenue to fall between $800 million and $875 million, a steep decline from the second quarter's $1.6 billion [6] - The company expected an adjusted EBITDA loss between $21 million and $28 million, attributed to a less favorable mix of older, lower-margin inventory and broader weakness in the U.S. housing market [6] Market Trends - Opendoor's stock is up 303% since the beginning of the year but is still trading 39% below its 52-week high of $10.52 from September 2025 [7] - The investment value for those who bought $1,000 worth of Opendoor's shares five years ago would now be approximately $337.99 [7]