Opendoor Technologies Inc. (OPEN) saw its stock price decline sharply by 9.42% to close at $1.73 on December 18, 2024, amid heightened concerns over its financial health and market position. The stock opened at $1.92 and reached a high of $1.98 before plummeting to a low of $1.71, with trading volume surging to 43,094,751 shares, significantly above its average. The decline was driven by a recent analysis highlighting a 37% y/y drop in home sales over the past two years, suggesting market saturation and increased competition. Additionally, the company's financial strain, marked by a $1.09 billion cash burn and $2.53 billion in debt, overshadowed any optimism about a potential housing market recovery.
The broader market environment also contributed to Opendoor's struggles, as U.S. stocks experienced a significant downturn following the Federal Reserve's announcement of a quarter-point rate cut. The Fed's projection of fewer rate cuts in 2025 than previously anticipated led to a surge in Treasury yields, exerting pressure on stocks, particularly those like Opendoor that are sensitive to interest rate changes. The Dow Jones Industrial Average and Nasdaq Composite both suffered substantial losses, further dampening investor sentiment.