What Happened?
Shares of technology real estate company Opendoor (NASDAQ: OPEN) fell 7.2% in the afternoon session after a prominent hedge fund manager called the company "total garbage," asserting its business model does not work.
The manager, who founded two billion-dollar hedge funds, noted that the company had lost money every single year since its founding and had "atrocious unit economics." This harsh critique arrived as another investor, Martin Shkreli, also announced a short position against the company. The negative sentiment compounded Opendoor's existing struggles, including internal workforce reductions and declining revenue.
The shares closed the day at $8.36, down 12.6% from previous close.
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What Is The Market Telling Us
Opendoor’s shares are extremely volatile and have had 93 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.
The previous big move we wrote about was 3 days ago when the stock dropped 2.5% on the news that the company's Chief Financial Officer departed and its chairman suggested the iBuyer was "bloated" and could dramatically slash its workforce.
The executive shuffle continued as Opendoor announced Christy Schwartz would take over as interim Chief Financial Officer, effective September 30, 2025. She replaced Selim Freiha, who departed the company on Friday. This move is the latest in a series of leadership changes aimed at steering the company back to profitability. The shakeup also recently saw Kaz Nejatian appointed as the new CEO and co-founders Keith Rabois and Eric Wu return to the board.
Adding to investor concerns, Rabois, the newly returned chairman, made blunt comments about the company's staffing. He stated he didn't know what most of the 1,400 employees did and that the company didn't need "more than 200 of them." These remarks signaled that significant and imminent headcount reductions could be on the horizon.
Opendoor is up 419% since the beginning of the year, but at $8.25 per share, it is still trading 21.6% below its 52-week high of $10.52 from September 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $491.66.
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