AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Citigroup Downgrades Opendoor to Sell, Sets New Price Target at $0.7
ByAinvest
Wednesday, Aug 6, 2025 6:16 pm ET1min read
Citigroup Downgrades Opendoor to Sell, Sets New Price Target at $0.7
Citigroup has downgraded Opendoor Technologies (NASDAQ: OPEN) to "Sell" and set a new price target of $0.70, reflecting a significant reduction from the previous target. The move comes amidst a series of challenging earnings reports and a gloomy outlook for the company's future performance.Opendoor's stock has been under intense scrutiny following a series of disappointing earnings reports and a weak forecast for the next quarter. The company reported a $1.6 billion in second-quarter revenue, up slightly from last year, but investors were unimpressed, particularly with the company's guidance for a significant drop in revenue for the third quarter, projecting a range of $800 million to $875 million, a 36% decline from a year ago [1].
During the earnings call, CEO Carrie Wheeler acknowledged the challenging macro environment and announced plans to cut back on marketing spend to preserve cash. The company's pivot to a "Product to Platform" model, involving more collaboration with real estate agents, raised concerns about potential execution risks. The company also reported a negative EBIT margin of 6.5%, $279 million in negative operating cash flow, and liabilities exceeding $1 billion.
Technical indicators suggest continued downside pressure, with the stock hugging the lower end of its Bollinger Band and a bearish MACD. The company is also facing potential delisting from the Nasdaq, with a special shareholder vote on a reverse stock split delayed until August 27 [1].
Citigroup's downgrade reflects the growing skepticism among investors about Opendoor's ability to navigate the current housing market and execute its strategic pivot. The new price target of $0.70 indicates a significant reduction in the company's valuation, underscoring the market's concerns about its future prospects.
References:
[1] https://invezz.com/news/2025/08/06/opendoor-stock-plunges-21-after-weak-forecast-could-more-downside-be-ahead/
[2] https://www.aol.com/why-opendoor-technologies-stock-soaring-151134441.html
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet