New York, Feb 25, 2026, 08:04 EST — Premarket
- Opendoor ended Tuesday down 4.7%, wrapping up the session at $5.11.
- Investors are reacting to new signs of weak housing demand, while Opendoor moves to a “leaner” home-flipping strategy.
- U.S. new home sales numbers land later Wednesday, giving traders a fresh read on housing momentum.
Opendoor Technologies Inc dropped 4.7% in the last session, ending at $5.11. Traders scaled back after a post-earnings rally, putting pressure on one of the housing sector’s more volatile stocks.
This shift comes as housing is once again drawing attention from macro watchers. Rate-sensitive names have swung this week, with investors juggling softer home-price numbers against a consumer base that remains hesitant on large purchases.
U.S. consumer confidence picked up in February, though Reuters noted a five-year peak in the number of households calling jobs “hard to get.” Home-buying plans slipped as well, making things less than simple for transaction-driven companies. Reuters
Home prices aren’t doing much to ease the strain. The S&P CoreLogic Case‑Shiller national index logged a 1.3% year-over-year increase in December 2025—a slowdown from the previous month and the softest rise seen in years.
Opendoor last week posted fourth-quarter revenue of $736 million and a net loss of $1.096 billion—most of that, the company said, coming from debt extinguishment costs. The “iBuyer” firm, which flips homes it buys directly from sellers, is now projecting first-quarter revenue to drop roughly 10% from the previous quarter and sees an adjusted EBITDA loss somewhere in the low-to-mid $30 million range. “This quarter demonstrates we are executing on that plan,” CEO Kaz Nejatian said in the release. SEC
Options traders are still bracing for sharp moves, despite the pullback on Tuesday. Implied volatility hovered in the mid‑80% range, Barchart data show.
Peers took a hit, too. Zillow dropped 5.7%; Compass tumbled nearly 11.8%. The moves highlight just how fast real-estate sentiment can flip when rates or demand indicators move.
Opendoor is banking on quicker inventory turnover and using less capital to help stabilize its performance, even with the housing market losing steam. The risk? If mortgage rates climb again, or if home prices drop further than anticipated, margins could take a hit and homes might sit on the books longer, leading to deeper price cuts.
Wednesday brings a demand check at 10:00 a.m. ET, when U.S. new home sales numbers hit. It’s one of the rare housing reports with the power to jolt rate-sensitive stocks on the spot.
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