Opendoor Stock Faces a Hard Profit Test as CEO Says Turnaround Is Working
Shares of Opendoor Technologies Inc. slipped Monday, trading recently at $4.88—off about 2.6%—after CEO Kaz Nejatian insisted the company has patched a key weakness in its approach. Investors looked past that assurance, focusing instead on a first-quarter loss that more than doubled year-over-year. Volume topped 30 million shares, putting market capitalization near $4.68 billion. It's not just the big loss—the real test now is whether Opendoor can pull off its plan. The company says it’s aiming for about breakeven adjusted EBITDA in the second quarter. Adjusted EBITDA, a non-GAAP metric, excludes interest, taxes, depreciation, amortization, and some other costs. That’s a critical point, since Opendoor is still buying homes and holding inventory, reselling those properties into a sluggish housing market. Every extra day a home sits unsold chips away at the company’s margins.