Opendoor Stock Falls as Profit Timeline Delays and Rising Yields Impact Housing Sector
Opendoor Technologies (NASDAQ:OPEN) stock dropped nearly 7% in early trading on Thursday, extending its year-to-date decline to over 50%. CEO Kaz Nejatian revealed that the company's adjusted net income break-even timeline has slipped by six to eight weeks. This delay comes amid a rise in Treasury yields to three-year highs, which directly affects Opendoor’s inventory financing costs and home clearance pace. The housing tech sector is under pressure as rising interest rates weigh on companies with large inventories like Opendoor. Unlike its peers Offerpad (NYSE:OPAD) and Zillow Group (NASDAQ:ZG), whose models are less capital-intensive, Opendoor carries homes on its balance sheet until resale, making it more sensitive to rate hikes. Nejatian acknowledged deteriorating housing conditions in late August but maintained the company's strategy while adjusting expectations for profitability by year-end. Opendoor plans to prioritize home clearance over margins to preserve cash flow and inventory efficiency, which could further delay earnings progress. Offerpad fell 2% and Zillow dropped 3%, both trailing Opendoor’s sharper decline due to Nejatian's admission of operational challenges.
Topics: inventory financing costs real estate tech stock price decline Treasury yields