Opendoor’s Epic Comeback: Can an AI Pivot Save This Meme Stock Darling?

5 days ago 4

Rich Duprey

Tue, November 11, 2025 astatine 9:46 AM CST 4 min read

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Opendoor Technologies (OPEN) banal surged 21% aft JPMorgan initiated sum with an Overweight standing and $8 terms target.
JPMorgan expects Opendoor quarterly location acquisitions to emergence astatine slightest 35% successful Q4 and projects breakeven by precocious 2026.
Third-quarter gross fell 33.5% year-over-year to $915M with gross margins shrinking to 7.2% from 11.5%.
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Opendoor Technologies (NASDAQ:OPEN) saw its banal tumble 17% past week aft releasing third-quarter net that highlighted ongoing challenges successful its iBuying business. The institution reported gross of $915 million, beating estimates but down 33.5% year-over-year arsenic it focused connected clearing bequest inventory alternatively than driving growth.

Adjusted losses came successful astatine $0.12 per share, missing the $0.07 consensus, portion nett losses widened to $90 cardinal from $78 cardinal a twelvemonth ago. Gross margins shrank to 7.2% from 11.5%, reflecting unit from older, lower-quality homes. The fourth-quarter outlook added to the pain, with gross expected to driblet astir 35% sequentially owed to bladed inventory aft a dilatory buying period. Management pushed profitability targets to breakeven by the extremity of 2026, signaling a longer roadworthy to betterment amid a strategy pivot to AI and software.

These misses and the delayed turnaround timeline crushed capitalist hopes that the stock's earlier meme-driven runup -- from summertime lows adjacent $0.50 to a mid-September precocious of $10.87 per stock could hold. Yesterday, though, the banal surged much than 21% aft an expert weighed successful with a bullish enactment astir the company. Does this mean the meme banal rally is backmost on?

JPMorgan expert Dae Lee kicked disconnected sum of Opendoor with an Overweight standing and an $8 terms people for December 2026, sparking the crisp rebound successful shares. Lee highlighted a "major translation underway" nether caller CEO Kaz Nejatian, who is refounding the steadfast arsenic a bundle and AI company. This displacement moves distant from the anterior management's risk-averse stance, focusing alternatively connected measurement maturation done tighter pricing spreads and faster location turns.

The expert pointed to Opendoor's usage of AI for pricing accuracy, workflow automation, and add-on services similar mortgages and warranties to boost per-transaction margins. He expects quarterly location acquisitions to emergence astatine slightest 35% sequentially successful the 4th quarter, rebuilding inventory and mounting up for stronger results.