Opendoor Stock Tumbles 24% in 3 Months: Time to Cash Out or Stay In?

Shares of Opendoor Technologies Inc. OPEN have plunged 23.6% over the past three months, trailing the Zacks Internet – Software industry, the broader Zacks Computer and Technology sector and even the S&P 500. On Tuesday, the stock closed at $5.08, below its 52-week high of $10.87 but well above its 52-week low of 51 cents. The detailed share price performance is shown in the chart below.

OPEN Stock’s 3-Month Performance

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Challenges: Why OPEN Stock Has Struggled

The recent stock decline also reflects near-term operational pressures tied to the company’s transition. Despite operational improvements under the Opendoor 2.0 strategy, Opendoor continues to face pressure from the transition of its inventory portfolio. Management noted that recent performance has been affected by the ongoing clearing of legacy inventory acquired under the prior operating approach. As the company works through this older book while building a newer pipeline of homes under the updated model, contribution margins may remain uneven in the near term.

Housing market volatility also remains a key risk for the business. Management indicated that a potential decline in home prices could affect margins, highlighting the company’s exposure to broader housing trends. While initiatives such as faster inventory turnover and the Cash Plus offering aim to reduce risk, the model still involves holding housing inventory, making results sensitive to movements in home prices.

That said, this real estate technology platform is seeing improving operational trends as the company executes its Opendoor 2.0 strategy. Product improvements, AI-driven tools and broader market availability are helping Opendoor increase home acquisitions and improve resale efficiency. Let us take a closer look at the factors shaping Opendoor stock’s prospects.

Opendoor 2.0 Model Improves Unit Economics

Opendoor’s turnaround strategy is centered on the Opendoor 2.0 operating model, which focuses on improving pricing precision, operational efficiency and resale performance. The company highlighted that its October 2025 acquisition cohort, the first cohort fully operating under the new model, is already showing strong early results. At roughly 50% sold through, this cohort is delivering the highest contribution margins for an October acquisition group in the company’s history.

The improvement reflects several structural changes, including better home selection, improved resale systems and more precise pricing decisions supported by machine-learning models. These changes also helped reduce the degradation in margins as homes move through the resale cycle. Management believes these improvements demonstrate that faster resale velocity and stronger margins can be achieved simultaneously, supporting the company’s broader path toward profitability.

Scaling Home Acquisitions to Drive Platform Growth

Opendoor is accelerating acquisition activity as part of its strategy to scale the platform. In the fourth quarter of 2025, the company purchased 1,706 homes, representing a 46% increase from the prior quarter. This marked an important step in rebuilding inventory after the company previously operated with lower acquisition volumes under a high-spread strategy.

The company expects acquisitions to continue scaling as the platform expands. Opendoor is targeting approximately 6,000 home acquisitions per quarter by the end of 2026. If the company successfully grows transaction volumes while maintaining disciplined unit economics, the platform could significantly expand its operating scale in the coming years.

Product Innovation Expands OPEN's Market Reach

Opendoor has also introduced several new products aimed at expanding its addressable market and improving the customer experience. One key development is the expansion of Opendoor Checkout, which is now available across 40 states and includes integrated mortgage preapproval and additional buyer protections.

The company has also expanded its geographic coverage and “buy box,” allowing the platform to serve nearly all homeowners across the lower 48 states. Previously, Opendoor’s services were available to roughly one-third of U.S. homes. With broader availability and improved product features, the company expects to generate a larger pipeline of potential sellers and buyers moving forward.

Improving Resale Velocity Supports OPEN’s Platform Efficiency

Opendoor has made meaningful progress in improving how quickly homes move through its platform. The percentage of homes on the market for more than 120 days declined from 51% at the end of the third quarter to 33% by the end of the fourth quarter. This improvement reflects changes in pricing strategies, stronger demand signals and improved monitoring systems.

Faster resale cycles help reduce inventory risk and capital exposure while improving overall margins. Management noted that resale velocity for the October acquisition cohort was roughly twice as fast as the same cohort in 2024. As the company continues scaling acquisitions under the new model, improved turnover rates could play a key role in strengthening its financial performance.

Competitive Landscape Adds Perspective to Opendoor’s Outlook

The recent decline in Opendoor stock also needs to be assessed alongside how key peers are navigating the same housing and technology environment. Zillow Group Z remains a major industry force and continues to influence digital real estate activity through large consumer traffic and the Premier Agent network. Although it stepped away from the iBuying model, Zillow Group still plays a key role in shaping online home search and data-driven discovery. This dynamic continues to push Opendoor to stand out through faster transactions and technology-based pricing models.

Offerpad Solutions Inc. OPAD remains another direct participant in the iBuying space. The company operates with a more focused and localized strategy compared with Opendoor’s broader national scale. Offerpad Solutions has also been concentrating on improving pricing spreads and maintaining tighter operational control. These efforts reflect a broader industry focus on efficiency and disciplined growth as companies adjust to changing housing conditions.

Valuation & Estimates for OPEN: Improved Outlook, but Not Cheap

From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.99, significantly below the industry’s average of 3.98. Conversely, industry players, such as Zillow Group and Offerpad Solutions, have P/S multiples of 3.47 and 0.06, respectively.

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Meanwhile, earnings estimates have improved over the past 30 days. The expected 2026 loss per share has narrowed significantly to 12 cents. Estimates for 2027 have also improved, shifting from a loss of 15 cents per share to earnings of 2 cents, indicating meaningful year-over-year improvement, as shown below. Revenues are expected to fall in 2026 (down 1.5%) but rebound strongly in 2027 (up 65.7%) as the new operating model takes hold.

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OPEN’s Investment Verdict: Hold for Now

The recent stock decline reflects investor concerns around Opendoor’s near-term challenges, including the ongoing transition of its inventory portfolio and sensitivity to housing market conditions. As the company clears legacy inventory acquired under the previous strategy while rebuilding a newer pipeline under Opendoor 2.0, margins and operating performance may remain uneven in the near term.

That said, Opendoor is gradually showing operational progress. Improvements in resale velocity, rising home acquisitions and broader product capabilities indicate that the new operating model is gaining traction. In addition, earnings estimates have moved in a favorable direction. Given these mixed dynamics, this Zacks Rank #3 (Hold) stock may see stable performance ahead. Existing investors can continue to hold OPEN, while new investors may wait for a more attractive entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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