Opendoor Technologies Inc. (OPEN) saw its stock price tumble by 8.97% on December 2, 2024, closing at $2.13 after opening at $2.34. The stock experienced heightened volatility, with trading volume reaching 60,378,469 shares, significantly above its average. The decline was driven by a combination of factors, including a notable decrease in short interest by 16.50% to 72.04 million shares, which, despite the reduction, still indicates a substantial short position. This dynamic, coupled with increased trading activity, suggests a reassessment by investors amidst market volatility.
The company's recent financial outlook has also contributed to the downward pressure. Opendoor's Q4 revenue projections of $925M to $975M fell short of the anticipated $1.2B consensus, raising concerns about its ability to meet market expectations. Additionally, the company is navigating a challenging real estate market, with high mortgage rates and increased competition impacting investor confidence. Opendoor's strategic focus on cost-saving measures, aiming for $85M in annual savings, and a projected adjusted EBITDA loss of $60M to $70M, underscores its efforts to manage risk and stabilize its financial position.