What Happened?
Shares of technology real estate company Opendoor (NASDAQ: OPEN) jumped 6.4% in the morning session after momentum improved as the stock appeared to rebound from a sharp sell-off late last week.
The real estate technology company saw its shares fall nearly 12% on Friday, and the pre-market gains suggested some investors saw a buying opportunity after the steep decline.
There was no major company-specific news released to account for the upward move. The stock has been volatile, experiencing a significant price increase over the past two weeks before Friday's drop. Opendoor's stock has been under pressure, with analysts pointing to concerns over the company's cash burn and a decline in the number of homes sold. The consensus rating from Wall Street analysts is currently a "Hold".
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What Is The Market Telling Us
Opendoor’s shares are extremely volatile and have had 80 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Opendoor is down 47.7% since the beginning of the year, and at $0.83 per share, it is trading 71.5% below its 52-week high of $2.92 from July 2024. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $72.66.
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