Opendoor Stock In Focus Ahead Of Q4 Earnings: What To Know

Opendoor Technologies Inc. (NASDAQ:OPEN) stock is in the spotlight Thursday ahead of the company’s fourth-quarter earnings report after the market closes.

• Opendoor shares are under pressure. Why are OPEN shares declining?

Earnings Expectations, Recent Results And What To Watch

Opendoor is expected to report a loss of 10 cents per share. The company has beaten revenue estimates in two of the last four quarters and topped earnings per share estimates in three of the last four quarters. In its most recent quarter, Opendoor posted a loss of 8 cents per share, missing the consensus estimate for a 7-cent loss. Revenue came in at $915.0 million, ahead of the $849.59 million estimate.

“Our path to profitability is clear: transact with more sellers, strengthen our unit economics through better pricing and resale speed, and drive operational efficiency by being ruthless on expenses. By the end of next year, we will drive Opendoor to breakeven Adjusted Net Income on a 12-month go-forward basis,” said Kaz Nejatian, CEO of Opendoor, in the company’s third-quarter earnings release.

Investors should keep an eye on Opendoor’s transaction volume, which is a key indicator of market demand and operational efficiency. Additionally, monitoring the average home sale price could provide insights into the company’s pricing strategy and market positioning. Lastly, watch for any changes in customer acquisition costs, as these metrics will be critical in determining the company’s ability to scale effectively in a competitive environment.

Bearish Momentum Persists Despite Long-Term Gains

Opendoor is currently trading at $4.50, which is 11.9% below its 20-day SMA and significantly below its longer-term 50-day and 100-day SMAs by 23.7% and 32.2%, respectively. This positioning indicates a bearish trend over both short and medium terms. Over the past 12 months, the stock has seen a substantial increase of 206.04%.

The RSI stands at 38.08, suggesting that the stock is neither overbought nor oversold, but leans towards a bearish momentum. The MACD further supports this bearish outlook, indicating downward momentum.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Opendoor Technologies, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 96.54) — The stock is outperforming the broader market significantly in terms of momentum.

The Verdict: Opendoor’s Benzinga Edge signal reveals a strong momentum trend. This suggests that despite the current price challenges, there is underlying strength in market activity that could bode well for future performance.

Opendoor Shares Edge Lower

OPEN Price Action: At the time of writing, Opendoor stock is trading 0.43% lower at $4.60, according to data from Benzinga Pro.

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