Why Is Opendoor Technologies Stock Soaring Friday? - Opendoor Technologies (NASDAQ:OPEN)

Core Viewpoint - Opendoor Technologies Inc. reported fourth-quarter financial results that exceeded analyst expectations, leading to a rise in share price during premarket trading [1]. Q4 Earnings Performance - For the quarter ended December, Opendoor reported revenue of $736 million, significantly surpassing the analyst estimate of $594.02 million [2]. - The company posted an adjusted loss of seven cents per share, better than the consensus estimate for a loss of 10 cents per share [2]. Operational Performance - The company purchased 1,706 homes during the quarter, marking a 46% increase compared to the previous quarter [3]. - Inventory velocity improved, with the percentage of homes on the market for over 120 days decreasing from 51% to 33% sequentially [3]. Management Commentary - CEO Kaz Nejatian attributed the strong performance to a revamped operational strategy, highlighting improvements in pricing accuracy, faster inventory turnover, and disciplined selection [4]. - The October 2025 acquisition cohort is projected to be the most profitable in the company's history, indicating improved contribution margins [4]. Future Outlook - For the first quarter of 2026, Opendoor expects revenue to decrease approximately 10% year-over-year [5]. - Management anticipates an adjusted EBITDA loss in the low to mid $30 million range, but expects to exit Q1 2026 with the highest contribution margin since Q2 2024 [5]. Short Interest Data - Short interest in Opendoor decreased from 119.12 million to 118.17 million shares, representing 13.83% of the company's float [6]. - The current short-to-cover ratio stands at 2.4 days, based on an average daily trading volume of 49.24 million shares [6]. Earnings & Analyst Outlook - The next major catalyst for the stock is the earnings report scheduled for May 5 [7]. - The stock currently carries a Hold Rating with an average price target of $2.59 [7]. - Recent analyst actions include Citigroup's Sell rating with a target raised to $1.40 and Keefe, Bruyette & Woods' Underperform rating with a target raised to $2.00 [8].