• Business

    Opendoor Stock Is Trading Lower Monday: What’s Happening?

    AnyFans Posted on

    Opendoor Stock Is Trading Lower Monday: What's Happening?

    Opendoor Technologies Inc OPEN shares are falling on Monday after hedge fund manager George Noble posted on X that the company is “total garbage,” raising concerns about the stock’s recent rally.
    What Happened: Noble, who has founded two billion-dollar hedge funds and was an assistant to famed investor Peter Lynch, criticized the iBuying platform following its more than 1,750% rally off all-time lows from late June.
    “The company has lost money every single year since its founding,” Noble said in an X post, adding that “the business model does not work and has atrocious unit economics.”
    Noble argued that there is no fundamental case for owning the stock at current levels and noted that cost-cutting measures are unlikely to have any meaningful impact on the company’s long-term trajectory.
    Opendoor shares are facing selling pressure as Noble’s post is being viewed as a credible warning against the stock’s fundamentals. The stock has become very popular among retail investors in recent months as Hedge fund manager Eric Jackson continues to call it undervalued on social media, suggesting shares are headed to $82. The Opendoor investment case has also benefited from an anticipated rate-cutting cycle.
    Noble’s post from over the weekend made comparisons between Opendoor and industry peer Compass Inc COMP. Noble pointed out that while Opendoor trades at 22 times enterprise-value-to-revenue, Compass trades at just 0.9 times, has a “strong balance sheet” and is profitable.
    Noble joins a growing list of prominent critics in Opendoor stock. Investor Martin Shkreli recently announced a short position against the company, calling it an “obvious short.” Citron Research, led by short-seller Andrew Left, also attacked the stock earlier this month, calling it “nothing more than a stock promo and a science project in how to burn money.”
    OPEN Price Action: Opendoor shares were down 9.12% at $8.70 at the time of publication on Monday, per Benzinga Pro.
    Read Next:
    Opendoor Army Dreams Of SuperBowl Ads While Stock Takes A Time-Out
    Image: PJ McDonnell/Shutterstock

    You Might Also Like