Opendoor Technologies jumped 18% to $5.47 in premarket trading on Friday after the online homebuying platform reported quarterly revenue that beat analyst expectations. The strong results renewed interest in a stock that had lost steam after last year’s big rally.
Fourth-quarter revenue reached $736 million, topping the $594 million consensus estimate. This rare beat comes as the company works to win over skeptics of its long-term business model. The result temporarily halts a three-month, 31% slide from highs above $10 seen after leadership changes last September.
The details show a more mixed picture. Adjusted net losses were $62 million for the quarter, and management expects revenue to fall by 10% in the next period. Opendoor bought 1,706 homes, which is less than half the number from a year ago, but up from 1,169 homes in the previous quarter.
Leaders highlighted progress in operations rather than just sales numbers. They noted a 46% increase in home purchases from the previous quarter, a 23% drop in average days homes are held in inventory, and growth in the Cash Plus program, which now makes up 35% of weekly transactions. This shift aims to lower capital needs as the company deals with a slow housing market.
The iBuying model itself remains, even after Zillow Group exited the business due to profitability challenges in many local markets. Opendoor’s current leaders, including CEO Kaz Nejatian (formerly Shopify’s chief operating officer) and returning co-founders Keith Rabois and Eric Wu, believe that faster deals and lower costs can help the company succeed where others have failed. While strong quarterly results have drawn renewed retail investor interest, Opendoor’s stock is still well below its recent peak, leaving questions about the company’s long-term durability.
