Opendoor Technologies Inc (NASDAQ:OPEN) shares closed down on Wednesday afternoon. The real estate technology firm, which soared 32% over the past five trading sessions, experienced a reversal as selling pressure mounted late Wednesday.
OPEN shares are sliding. Track the action here.
What To Know: The recent surge was largely fueled by macroeconomic optimism, following indications from the Federal Reserve for interest rate cuts. Hope for lower mortgage rates invigorated the real estate sector, directly benefiting Opendoor's iBuying business model and sending the stock to multi-month highs.
The stock’s rally was further supported by a recently shared vision from interim CEO Shrish Radhakrishna focusing on an AI-driven, multi-product future for the company.
Why Rates Matter: The prospect of lower interest rates is fundamentally important for Opendoor’s business. Cheaper mortgage financing makes homeownership more affordable, which stimulates broader housing market demand.
For Opendoor’s iBuying model, which involves purchasing homes directly from sellers and then re-listing them, a more active market with a larger pool of potential buyers is crucial. It increases the likelihood of faster inventory turnover and potentially stronger sale prices, directly improving the company’s revenue and profitability outlook.
The stock’s recent upward momentum came to a halt on Wednesday as the stock price neared the critical $4.85 mark. This level has proven to be a formidable technical barrier, rejecting the stock on at least four separate occasions since mid-2023.
OPEN Price Action: According to data from Benzinga Pro, OPEN shares closed down 14.47% to $4.02 on Wednesday. The stock has a 52-week high of $5.87 and a 52-week low of 51 cents.
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How To Buy OPEN Stock
By now, you're likely curious about how to participate in the market for Opendoor Technologies — be it to purchase shares or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Opendoor Technologies, which traded at $4.30 at some point on Wednesday, $100 would buy you 23.26 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.
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