"Opendoor Technologies ( NASDAQ:OPEN ) saw its stock tumble 17% last week after releasing third-quarter earnings that highlighted ongoing challenges in its iBuying business. The company reported revenue of $915 million, beating estimates but down 33.5% year-over-year as it focused on clearing legacy inventory rather than driving growth. Adjusted losses came in at $0.12 per share, missing the $0.07 consensus, while net losses widened to $90 million from $78 million a year ago."
"These misses and the delayed turnaround timeline crushed investor hopes that the stock's earlier meme-driven runup - from summer lows near $0.50 to a mid-September high of $10.87 per share could hold. Yesterday, though, the stock surged more than 21% after an analyst weighed in with a bullish note about the company. Does this mean the meme stock rally is back on?"
"JPMorgan analyst Dae Lee kicked off coverage of Opendoor with an Overweight rating and an $8 price target for December 2026, sparking the sharp rebound in shares. Lee highlighted a "major transformation underway" under new CEO Kaz Nejatian, who is refounding the firm as a software and AI company. This shift moves away from the prior management's risk-averse stance, focusing instead on volume growth through tighter pricing spreads and faster home turns."
Quarterly revenue declined to $915 million, down 33.5% year-over-year, as the company prioritized clearing legacy inventory over growth. Adjusted losses were $0.12 per share, missing consensus, and net losses widened to $90 million from $78 million. Gross margins contracted to 7.2% from 11.5%, driven by older, lower-quality homes. The company expects fourth-quarter revenue to fall about 35% sequentially because of thin inventory. Management now aims for breakeven by the end of 2026 and is pivoting toward AI, pricing technology, workflow automation, and software-enabled add-ons to improve margins and volume.
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