What Happened?
Shares of technology real estate company Opendoor (NASDAQ: OPEN) fell 5% in the afternoon session after a major shareholder sold a large block of shares and a prominent hedge fund manager publicly criticized its business model.
The stock's decline extended a slide from the previous trading session after a filing revealed that top holder Access Industries sold about 11.4 million shares for $95.2 million. This move followed a similar large sale by the same firm earlier in the month, shaking investor confidence.
Adding to the pressure, hedge fund manager George Noble attacked Opendoor's business model on X, calling the online real estate firm “total garbage.” Noble noted that the company had lost money every single year since it was founded and suffered from “atrocious” unit economics and a “lousy balance sheet.” These concerns fed into existing worries about the company's strategy of buying and flipping homes, which comes with high carrying costs like taxes and repairs. A recent report showed that an alarming 36% of Opendoor's homes had remained on the market for more than 120 days.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Opendoor? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Opendoor’s shares are extremely volatile and have had 94 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 about 23 hours ago when the stock dropped 7.2% on the news that 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.
Opendoor is up 374% since the beginning of the year, but at $7.53 per share, it is still trading 28.4% 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 $493.43.
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