Opendoor Technologies (OPEN) dropped sharply more than 12% on Thursday, slipping to around $3.85 amid a broad market selloff that hit high-beta stocks especially hard. The real estate sector stayed mostly flat, making OPEN’s decline particularly notable.
Investors are rattled by deteriorating signs in the U.S. housing market. Homebuilder sentiment fell unexpectedly, while mortgage rates remain high, both dampening demand for Opendoor’s home-flipping operations. This fresh headwind adds pressure as the company approaches its second-quarter earnings release scheduled for August 4.
Beyond the macroeconomic difficulties, analysts remain divided on OPEN’s outlook. Earnings estimates predict a wider loss this quarter a 3-cent-per-share loss compared to a 1-cent loss last year with revenue expected to drop from $1.57 billion to about $900 million year-over-year. Price targets vary widely, from as low as $1.40 to up to $8.00, though the consensus rating hovers at Hold.
Chart Signals and Technical Weakness
Technically, Opendoor’s stock has been struggling for months. It currently trades well below all major moving averages 16.1% under its 20-day, 15.7% below the 50-day, and a full 31.6% beneath the 200-day average. A death cross, where the 50-day moving average crossed below the 200-day back in March, remains an overhead resistance, hindering any sustained rallies.
The MACD indicator also points down, suggesting diminishing buying pressure. Key resistance now stands near $4.60, close to the 50-day average, while support lies roughly at $4.28. This technical setup implies that short-term rebounds might face quick selling pressure.
Year-to-date, OPEN has lost nearly 25%, though it managed a 75% gain over the past year from its low of $1.70. Still, investors are watching closely for the earnings report, as caution over profitability and potential dilution risk could prolong the downturn.
