Opendoor Has Lost a Half of Its Value in 2026. Is It Time to Buy?

Like many housing-related stocks amid rising interest rates and a chilly real estate market, Opendoor Technologies (NASDAQ: OPEN) has been a broken home in 2026. Shares of the home flipper have plummeted 61% this year, down a brutal 94% from their peak coming out of the pandemic a little more than five years ago.

Opendoor is the country's largest iBuyer, offering homeowners the ability to sell their homes instantly at a market-discounted price. Opendoor's goal is to make any cost-effective repairs and remodel to sell the home at a premium.

Image source: Getty Images.

Home is where the heart is

Unfortunately for Opendoor, you need hungry buyers and sellers for the iBuyer business model to work. With home sales hovering near a 30-year low and mortgage rates rising for the seventh consecutive week to hit a three-year high, this is a rough scenario for Opendoor stock.

Homeowners don't want to sell and give up their lower current mortgage rates to move somewhere else. Potential buyers are seeing rising rates diminish the value of properties they can afford.

Opendoor isn't just getting pinched on weak supply and demand. It also means struggling to flip homes profitably in the current environment. But it won't always be that way.

Stealing home

Revenue is declining sharply for the fourth consecutive year. Analysts see Opendoor turning an adjusted profit by 2028, but that also assumes revenue will more than double by then. It's a rough market, and there's a reason why the country's two largest real estate portals pulled out of the iBuyer market years ago.

Just 0.2% of homes are being sold this way, but market conditions change. In the meantime, Opendoor has spent the last few years shaving operating expenses and even making the process of acquiring a property substantially cheaper.

Opendoor has $2 billion in current liabilities and long-term debt, but more than $2.7 billion in cash and inventory. The risks are there if a turnaround in the real estate market doesn't materialize in the next couple of years, but the backyard trampoline is also there for Opendoor to jump on at the moment the climate turns in its favor. The ceiling is high, but buyers need to know the sinkhole risks.

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.