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Opendoor Rallies as New CEO Unveils Warrant Dividend and Pledges $1 Million Stock Buy

A warrant dividend seeks to stabilize sentiment after a rough quarter.

Overview

  • Opendoor reported Q3 revenue of $915 million with a loss of $0.12 per share and cautioned that fourth-quarter losses will widen.
  • The company registered 180.6 million new shares at $6.56 under its shelf, a material dilution flagged in an SEC filing.
  • Shareholders of record on November 18 will receive three tradable warrants for every 30 shares, with $9, $13, and $17 strikes expiring in November 2026.
  • CEO Kaz Nejatian said he and his family would buy $1 million of stock at the first eligible market open, while recent insider buys were disclosed with no sales reported.
  • Shares jumped about 21% Monday after a supportive JPMorgan note highlighted a software-and-AI pivot and a path to breakeven by end-2026, with high short interest adding to volatility.