Should You Buy the Post-Earnings Dip in Opendoor Stock?

Core Insights - Opendoor's revenue declined significantly and losses widened year-over-year in Q3, with management indicating that losses will increase further in Q4 [1] - The company issued nearly 181 million new shares, raising concerns about dilution [1] Financial Performance - Despite the decline in revenue and increased losses, Opendoor's stock is trading at over 10 times its price from early June, driven by retail investors known as the "Open Army" [2] - The new CEO, Kaz Nejatian, aims for profitability by the end of next year and is implementing changes to reduce losses, including adopting an AI-powered operating model [3] Strategic Changes - Nejatian's ambition is to transform Opendoor into a streamlined marketplace for real estate transactions, which could potentially increase the company's stock price significantly [4] - Insiders have been buying shares, indicating confidence in the company's long-term prospects, with three purchases and no sales since August [5] Market Sentiment - Opendoor is trading above its 100-day moving average, suggesting that bullish sentiment remains [6] - However, Wall Street recommends caution due to the company's meme stock status, with a consensus rating of "Hold" and a highest price target of $6, indicating a potential downside of about 6% from current levels [8]