Opendoor Technologies Downgraded to Sell by Zelman & Assoc. with a $1.00 Price Target

Opendoor Technologies was downgraded to Sell by Zelman & Assoc. with a price target of $1.00. The company's shares closed at $1.95. The downgrade was in addition to a Sell rating from Citi's Ygal Arounian, but J.P. Morgan maintained a Buy rating on Opendoor Technologies. The company has a one-year high of $4.97 and a one-year low of $0.51, with an average volume of 188.1M.

Opendoor Technologies (NASDAQ: OPEN), a prominent player in the iBuying market, has seen its stock face significant volatility in recent weeks. The company reported its second-quarter earnings, which showed a solid revenue performance but a guidance for a steep drop in revenue in the third quarter. The market reacted negatively to this news, and the stock has been on a downward trajectory since the earnings report.

Opendoor's second-quarter results were mixed. Revenue was up 4% year-over-year to $1.6 billion, with sales of 4,299 homes, an increase of 5% from the previous year. However, the company reported a net loss of $29 million, compared to a loss of $92 million in the same period last year. On a non-GAAP basis, the net loss was $9 million, an improvement from the $31 million loss in the second quarter of 2024. Despite the positive earnings report, the market was more focused on the company's guidance, which called for a significant drop in revenue for the third quarter.

The company is shifting its business model from a direct-to-consumer model to one that includes sales agents. This move aims to provide sellers with additional options, such as listing their homes on the open market for potentially higher prices. However, this shift has led to a decrease in the number of homes expected to be bought in the third quarter, with the company guiding for around 1,200 homes, down from 3,504 homes in the same period last year.

In addition to the market's reaction to the company's guidance, Opendoor has faced several analyst downgrades. Zelman & Assoc. downgraded the stock to a "Sell" rating with a price target of $1.00, while Citi's Ygal Arounian also downgraded the stock to a "Sell" rating. However, J.P. Morgan maintained a "Buy" rating on the stock. The stock closed at $1.95 on July 2, 2025, after the downgrades.

The company's stock has experienced significant price fluctuations in the past year, with a one-year high of $4.97 and a one-year low of $0.51, averaging a volume of 188.1 million shares per day. The stock has gained 24% in 2025 but has dropped more than 90% from its all-time highs set in 2021.

Opendoor Technologies is facing a period of uncertainty and volatility as it adjusts to its new business model. The company's ability to execute its strategic shift and navigate the current housing market conditions will be crucial in determining its long-term viability. Investors should closely monitor the company's progress and consider the potential risks and rewards before making any investment decisions.

References:
[1] https://finance.yahoo.com/news/prediction-heres-whats-next-opendoor-221500984.html
[2] https://www.ainvest.com/news/opendoor-technologies-gains-nasdaq-compliance-cancels-stockholder-meeting-2508/
[3] https://www.nasdaq.com/articles/opendoor-technologies-inc-open-reports-q2-loss-beats-revenue-estimates