Opendoor Reports 38% Revenue Decline Amid Weak Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2026
0mins
Source: stocktwits
Opendoor Technologies Inc. (OPEN) experienced a decline of 3.08% in its stock price, hitting a 20-day low, following the release of its Q1 earnings report.
The company reported a significant 38% decline in revenue to $720 million, which, while exceeding market expectations, was overshadowed by a net loss that more than doubled to $173 million. Morgan Stanley responded by lowering its price target for OPEN from $6 to $5.50, maintaining an 'Equal Weight' rating, reflecting a cautious outlook on the company's future performance. Despite these challenges, management expressed optimism for a 25% sequential revenue increase in Q2, indicating potential recovery.
The implications of this earnings report suggest that while the immediate financial results are disappointing, the anticipated recovery in Q2 and the positive retail sentiment on platforms like Stocktwits may provide some support for the stock moving forward.
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Analyst Views on OPEN
Wall Street analysts forecast OPEN stock price to fall
5 Analyst Rating
1 Buy
2 Hold
2 Sell
Hold
Current: 5.070
Low
1.40
Averages
4.35
High
8.00
Current: 5.070
Low
1.40
Averages
4.35
High
8.00
About OPEN
Opendoor Technologies Inc. is an e-commerce platform for residential real estate transactions. By leveraging software, data science, product design and operations, the Company is engaged in building a technology platform for residential real estate that offers buyers and sellers a digital, on-demand experience. Its product offerings include Sell to Opendoor, List with Opendoor and Opendoor Marketplace. Sell to Opendoor enables sellers to utilize its core product offering to sell their home directly to it, and it resells the home to a home buyer. By selling to Opendoor, homeowners can avoid the stress of open houses, home repair coordination, overlapping mortgages, and the uncertainty that can come with listing a home on the open market. Its capital-light marketplace offering connects home sellers with both institutional and retail buyers, facilitating transactions without Opendoor taking ownership of the home. Its listing product is available in nearly all Opendoor markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Uber's Growth Potential: Uber's gross bookings are projected to increase from $90.4 billion in 2021 to $193.5 billion by 2025, with monthly active platform consumers rising from 118 million to 202 million, solidifying its leadership in the global ride-hailing and food delivery markets, indicating robust market demand and expansion capabilities.
- MercadoLibre's Market Expansion: MercadoLibre's net sales are expected to quadruple from 2021 to 2025, with net income growing over 24 times, serving over 120 million active buyers, showcasing its strong growth potential in the Latin American e-commerce and fintech sectors.
- Opendoor's Market Challenges: Although Opendoor's revenue is projected to plummet from $15.6 billion in 2022 to $4.4 billion in 2025, its stock trades at just over one times sales, indicating potential investment value, especially as the housing market stabilizes.
- Investment Strategy Recommendation: In light of potential market corrections, investors are advised to consider stocks like Uber, MercadoLibre, and Opendoor, as their growth potential and market positions make them attractive long-term investment options.
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- E-commerce Growth in Latin America: MercadoLibre, the leading e-commerce and fintech player in Latin America, is expected to see its net sales quadruple and net income grow over 24 times from 2021 to 2025, indicating significant market potential amid improving economic stability and internet penetration in the region.
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- Investor Strategy Recommendations: In light of potential market corrections, investors are advised to remain calm and recall Warren Buffett's investment philosophy, considering increasing their stakes in long-term growth stocks like Uber, MercadoLibre, and Opendoor during market downturns to capitalize on future growth opportunities.
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- Stocks Removed: The rebalancing will see Clipper Realty, Franklin Street Properties, Mobile Infrastructure, and Logistic Properties of the Americas removed, reflecting a decline in market confidence towards these companies, which may negatively impact their stock prices.
- Effective Date: These structural changes will officially take effect after the U.S. equity markets close on June 26, prompting investors to pay attention to this date for timely portfolio adjustments.
- Opendoor Revenue Outlook: Opendoor Technologies anticipates approximately 25% revenue growth in Q2 and targets a mid-range contribution margin of 5% to 7%, demonstrating the company's potential for growth in a challenging housing market.
See More
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- Commission Structure Adjustment: The company introduced a new tiered commission structure where agents earn 1% on their first transaction of the year, increasing to 2% with more deals, aimed at attracting more real estate agents to the platform and enhancing market penetration.
- Tech-Driven Real Estate Platform: Opendoor's 2.0 strategy focuses on building a technology-driven real estate platform that streamlines transaction processes and strengthens agent partnerships, expected to improve transaction speed and customer satisfaction, potentially enhancing the company's market performance.
- Market Sentiment Analysis: Although retail sentiment for OPEN has remained in the 'bearish' zone over the past 24 hours, positive user feedback regarding the RealScout integration indicates an optimistic outlook on Opendoor's transformation and growth potential, which may improve its stock performance.
See More
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- Ownership Stake Impact: The transaction resulted in a 0.013% increase in Nejatian's direct ownership stake, maintaining his substantial holdings without materially altering his exposure to Opendoor Technologies.
- Strategic Implications: This purchase does not indicate a significant shift in investment strategy but rather reflects routine accumulation, showcasing Nejatian's confidence in Opendoor's future, particularly with the introduction of the AI-driven Opendoor 2.0 strategy.
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- Historical Trading Comparison: Since September 2025, Nejatian has made two open-market purchases totaling 225,000 shares, with this latest acquisition representing 44% of that net accumulation, suggesting consistency in his trading activity without a shift in investment strategy.
- Financial Performance Analysis: Despite Q1 revenue dropping to $720 million, a 40% year-over-year decline, home purchases surged by 45% quarter-over-quarter, indicating potential recovery under the new strategy “Opendoor 2.0,” although net losses increased to $173 million.
- Investor Considerations: While the CEO's share purchase signals a positive outlook, analysts recommend that investors wait for subsequent quarterly performance before deciding on Opendoor stock, to assess the effectiveness of the AI-driven approach.
See More
Market Outlook and Investment Recommendations Amid S&P 500 Rally
- Uber's Growth Potential: Uber's gross bookings are projected to increase from $90.4 billion in 2021 to $193.5 billion by 2025, with monthly active platform consumers rising from 118 million to 202 million, solidifying its leadership in the global ride-hailing and food delivery markets, indicating robust market demand and expansion capabilities.
- MercadoLibre's Market Expansion: MercadoLibre's net sales are expected to quadruple from 2021 to 2025, with net income growing over 24 times, serving over 120 million active buyers, showcasing its strong growth potential in the Latin American e-commerce and fintech sectors.
- Opendoor's Market Challenges: Although Opendoor's revenue is projected to plummet from $15.6 billion in 2022 to $4.4 billion in 2025, its stock trades at just over one times sales, indicating potential investment value, especially as the housing market stabilizes.
- Investment Strategy Recommendation: In light of potential market corrections, investors are advised to consider stocks like Uber, MercadoLibre, and Opendoor, as their growth potential and market positions make them attractive long-term investment options.
See More
Uber Continues to Dominate Ride-Hailing Market
- Uber's Market Expansion: From 2021 to 2025, Uber's gross bookings more than doubled from $90.4 billion to $193.5 billion, while its monthly active platform consumers surged from 118 million to 202 million, solidifying its position as the world's leading ride-hailing and food delivery company, showcasing its strong competitive edge in the market.
- E-commerce Growth in Latin America: MercadoLibre, the leading e-commerce and fintech player in Latin America, is expected to see its net sales quadruple and net income grow over 24 times from 2021 to 2025, indicating significant market potential amid improving economic stability and internet penetration in the region.
- Opendoor's Market Outlook: As the largest instant home-buyer in the U.S., Opendoor is projected to achieve a 21% CAGR in revenue from 2025 to 2028, and despite current challenges from high interest rates, its stock appears undervalued at just over one times this year's sales, suggesting potential for substantial gains in the future.
- Investor Strategy Recommendations: In light of potential market corrections, investors are advised to remain calm and recall Warren Buffett's investment philosophy, considering increasing their stakes in long-term growth stocks like Uber, MercadoLibre, and Opendoor during market downturns to capitalize on future growth opportunities.
See More
U.S. Equity Index Rebalancing Announced
- Index Component Changes: FTSE Russell has unveiled the preliminary adjustments for the Russell 3000 Index, adding real estate stocks such as Opendoor Technologies, Orion Properties, Comstock, National Healthcare Properties, and Janus Living, indicating a market shift towards real estate.
- Stocks Removed: The rebalancing will see Clipper Realty, Franklin Street Properties, Mobile Infrastructure, and Logistic Properties of the Americas removed, reflecting a decline in market confidence towards these companies, which may negatively impact their stock prices.
- Effective Date: These structural changes will officially take effect after the U.S. equity markets close on June 26, prompting investors to pay attention to this date for timely portfolio adjustments.
- Opendoor Revenue Outlook: Opendoor Technologies anticipates approximately 25% revenue growth in Q2 and targets a mid-range contribution margin of 5% to 7%, demonstrating the company's potential for growth in a challenging housing market.
See More
Opendoor Launches New Cash Transaction Program
- New Cash Transaction Model: Opendoor has launched the 'Cash Now, More Later' program in partnership with RealScout, allowing sellers to receive cash upfront while being eligible for any upside upon resale, significantly enhancing liquidity and competitiveness in the market.
- Commission Structure Adjustment: The company introduced a new tiered commission structure where agents earn 1% on their first transaction of the year, increasing to 2% with more deals, aimed at attracting more real estate agents to the platform and enhancing market penetration.
- Tech-Driven Real Estate Platform: Opendoor's 2.0 strategy focuses on building a technology-driven real estate platform that streamlines transaction processes and strengthens agent partnerships, expected to improve transaction speed and customer satisfaction, potentially enhancing the company's market performance.
- Market Sentiment Analysis: Although retail sentiment for OPEN has remained in the 'bearish' zone over the past 24 hours, positive user feedback regarding the RealScout integration indicates an optimistic outlook on Opendoor's transformation and growth potential, which may improve its stock performance.
See More
Opendoor CEO's Share Purchase Signals Confidence
- Share Purchase Details: On May 11, 2026, Opendoor CEO Kasra Nejatian purchased 100,000 shares in an open-market transaction valued at $487,800, increasing his direct holdings to 83,578,299 shares, which are now worth approximately $407.69 million.
- Historical Trading Comparison: Since September 2025, Nejatian has made two open-market purchases totaling 225,000 shares, with this latest acquisition representing 44% of that total, indicating a consistent trading pattern aligned with his recent activities.
- Ownership Stake Impact: The transaction resulted in a 0.013% increase in Nejatian's direct ownership stake, maintaining his substantial holdings without materially altering his exposure to Opendoor Technologies.
- Strategic Implications: This purchase does not indicate a significant shift in investment strategy but rather reflects routine accumulation, showcasing Nejatian's confidence in Opendoor's future, particularly with the introduction of the AI-driven Opendoor 2.0 strategy.
See More
Opendoor CEO Acquires 100,000 Shares, Signaling Confidence
- Share Acquisition Details: On May 11, 2026, Opendoor CEO Kasra Nejatian purchased 100,000 shares in the open market for $487,800, increasing his direct holdings to 83,578,299 shares, valued at approximately $407.69 million, indicating strong confidence in the company's future.
- Historical Trading Comparison: Since September 2025, Nejatian has made two open-market purchases totaling 225,000 shares, with this latest acquisition representing 44% of that net accumulation, suggesting consistency in his trading activity without a shift in investment strategy.
- Financial Performance Analysis: Despite Q1 revenue dropping to $720 million, a 40% year-over-year decline, home purchases surged by 45% quarter-over-quarter, indicating potential recovery under the new strategy “Opendoor 2.0,” although net losses increased to $173 million.
- Investor Considerations: While the CEO's share purchase signals a positive outlook, analysts recommend that investors wait for subsequent quarterly performance before deciding on Opendoor stock, to assess the effectiveness of the AI-driven approach.
See More
