NEW YORK, March 24, 2026, 12:29 PM EDT
- Opendoor shares slid roughly 2% by midday Tuesday, with housing stocks generally weaker as Wall Street pulled back.
- Opendoor’s stock tends to react sharply to mortgage rate moves, given the company’s business model: it snaps up homes, holds them as inventory, and aims to turn properties over rapidly when spring buyers return.
- Management says breakeven adjusted net income by the end of 2026 remains the goal, despite calling for first-quarter revenue to drop sequentially.
Opendoor Technologies Inc shares slipped roughly 2% to $5.09 midday Tuesday, giving up ground alongside a weaker Nasdaq and several other stocks tied to the housing sector.
This shift hits Opendoor’s core business—turnover is everything. The company acquires homes, holds inventory, then flips them. Higher mortgage rates slow buyers, so homes sit longer; profits can get squeezed.
The strain is surfacing right as the spring homebuying season kicks off. Freddie Mac’s latest weekly survey had the average 30-year fixed mortgage rate at 6.22% last week—marking the highest level since early December. Bankrate’s lender poll on Tuesday showed purchase rates at 6.43%. January’s new-home sales, according to Reuters, slipped to their lowest in nearly three and a half years.
Losses spread out across the board. Wall Street’s major indexes slipped on Tuesday, with renewed uncertainty over the Middle East putting the brakes on Monday’s relief rally. By midmorning, the Nasdaq had dropped 0.83%. Compass gave up about 4.1%, Zillow was off around 1%, and Offerpad shed roughly 2.6%.
Opendoor’s pitch to investors lately has leaned hard on execution, not hopes for a fast housing bounce. For the fourth quarter, revenue landed at $736 million—well off the $1.08 billion posted the year before. That said, the number of homes it picked up jumped 46% quarter-on-quarter, and the company managed to cut average days in possession by 23%. Adjusted EBITDA, which strips out some items, narrowed to a $43 million loss.
Chief Executive Kaz Nejatian said the company was “executing on that plan” as it works toward breakeven adjusted net income by the end of 2026, measured over a trailing 12-month period. Opendoor, meanwhile, projected first-quarter revenue to fall about 10% from the previous quarter and expects an adjusted EBITDA loss somewhere in the low-to-mid $30 million range. Securities and Exchange Commission
The U.S. housing market’s still looking shaky. Opendoor warned investors that 2025 is shaping up as a tough year, squeezed by stubbornly high mortgage rates and ongoing affordability issues. Existing-home sales? Just about 4 million—marking a low not seen in three decades. Since launch, the company says it’s handled more than 294,000 deals across the country. Delistings, Opendoor noted, climbed to their highest ever in the firm’s operating history.
Few economists are predicting a shift. James Knightley at ING described the housing market as “not doing very much,” and Bill Owens, Chairman of the National Association of Home Builders, noted that “many buyers remain on the fence.” According to a Reuters poll conducted last week, analysts expect U.S. home prices to edge up just 1.8% this year. Reuters
Still, the downside risk isn’t hard to spot. Opendoor flagged hefty inventory exposure and noted home price swings can sting—$57 million in inventory valuation adjustments hit in 2025, marking more homes written down as resale forecasts soured. There’s another headache: its 2030 convertible notes. Investors holding the debt can opt to convert to stock in the quarter ending March 31, and if Opendoor has to pay out in cash, liquidity could take a hit.
Opendoor’s market cap landed near $5.9 billion at Tuesday’s close. The story for shareholders hasn’t changed much: it’s still all about mortgage rates, how fast homes are reselling, and whether spring brings real volume.
