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Opendoor Tumbles as Housing Report Stalls Momentum and Insider Sale Weighs on Shares

A retail-fueled rally now confronts weak fundamentals.

Overview

  • Shares fell 11% on Wednesday and are down roughly 30% over the past week, even as major indexes gained.
  • Redfin reported October home sales and new listings plateaued, limiting Opendoor’s ability to turn inventory and pressureing margins.
  • Interim CFO Christina Schwartz sold 73,951 shares for $583,473 on November 18 through a mandatory sell-to-cover program.
  • Opendoor remains unprofitable with a reported 8.01% gross margin, heavy reliance on debt, and billions of dollars in housing inventory.
  • The company has issued a warrant distribution intended to pressure short sellers, which could dilute shares by up to about 10% if exercised, with short interest reported above 22%.