NEW YORK, May 27, 2026, 13:05 (EDT)
Opendoor Technologies shares traded higher early Wednesday afternoon after the online real-estate company said it’s set to join the Russell 3000 Index. The move adds an index angle to a stock that’s seen plenty of volatility.
The stock gained 38.5 cents to $4.865, up 8.6% from the last close, with more than 36 million shares traded. Market value stood near $4.66 billion, according to market data.
Russell’s reconstitution is in focus because it can spark shifts for passive index funds. These funds buy and sell stocks to match the index instead of picking them themselves. FTSE Russell said the changes will kick in after U.S. markets close on June 26. About $12.2 trillion is linked to Russell U.S. indexes, either benchmarked or invested in related products.
Opendoor said it will join the Russell 3000 after the market closes on June 26. The company said this usually means it will also be added to either the Russell 1000 or the Russell 2000, plus the related growth and value style indexes. FTSE Russell is set to release updates on May 29, June 5, June 12 and June 18.
FTSE Russell’s preliminary additions list has OPENDOOR TECHNOLOGIE (A) (OPEN) in the real estate group.
FTSE Russell CEO Fiona Bassett said moving to a semi-annual reconstitution aims to let its indexes “more responsively reflect changing market dynamics.” Catherine Yoshimoto, director of product management for Russell U.S. Indexes, said U.S. equity markets had widened over the past year, moving beyond just the biggest tech stocks. LSEG
Speculative trading was already picking up in the stock before Wednesday’s announcement. Cboe figures from The Fly showed options volume Tuesday was much higher than usual, with call contracts ahead of puts. The put/call ratio was at 0.17, compared to a more normal 0.21.
Opendoor’s index news arrives as investors look at the company’s operating overhaul under CEO Kaz Nejatian. The company’s first-quarter report this month showed $720 million in revenue, falling from $1.153 billion a year earlier. Net loss came in wider at $173 million, versus $85 million last year. Gross margin ticked up to 10.0% from 8.6%.
Opendoor Technologies Inc. is pushing to flip homes faster while keeping margins up. The company said it bought 45% more homes compared to last quarter. Inventory aged over 180 days dropped to 10% from 33%. Contribution margin came in at 4.4% for the first quarter. “The machine is working,” Nejatian said in the release. Opendoor Technologies Inc.
Opendoor expects second-quarter revenue to rise about 25% from the first quarter, with contribution margin landing in the middle of its 5% to 7% target and adjusted EBITDA close to breakeven. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, with some items excluded; it’s a non-GAAP metric and doesn’t replace net income under standard accounting.
Opendoor is still being compared to Zillow Group and Offerpad Solutions in a tough market. Zacks recently grouped the companies as the public benchmarks for housing-tech and iBuying stocks. The sector is still seeing high mortgage rates and mixed housing demand.
But getting into the index doesn’t solve the business model. The risk is that the extra demand from rebalancing could disappear after June, and new index weights mean investors move on. Soft housing demand and high borrowing costs could also make it tough for Opendoor to turn a profit buying and reselling homes. The company flagged housing-market weakness, rates, competition, liquidity, and inventory resale risks as possible problems.
Opendoor’s stock now has a set date to watch: June 26. The real test for the company is if it can keep lifting resale speed and margins once the index move is behind it.
