Why Opendoor Technologies Stock Plummeted Today

Key Points

• Opendoor stock got hit with a double-digit sell-off today, but it's still up more than 150% in 2025.

• The company's valuation pullback today came amid high levels of volatility for the stock lately.

• Opendoor could surge above its current valuation level, but shares look very risky.

• 10 stocks we like better than Opendoor Technologies ›

Opendoor Technologies (NASDAQ: OPEN) stock suffered a big sell-off in Wednesday's trading. The company's share price fell 14.7% in the daily session and had been down as much as 15.7%. For comparison, the S&P 500 and the Nasdaq Composite each gained 0.2% today.

Big swings for the stock have been the norm lately, and there don't appear to have been any business-specific catalysts behind Opendoor's big valuation pullback today. To put the volatility in perspective, Opendoor's share price had actually been up as much as 5.7% in today's trading before the gains withered and reversed into deep sell-off territory.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Opendoor stock retreats in another volatile trading day

Opendoor stock has been hugely volatile in recent months and is actually still up roughly 152% year to date despite some big sell-offs over the last couple of days. The stock's big rally was partially spurred by vocal votes of bullish confidence from EMJ Capital founder and CEO Eric Jackson.

From there, Opendoor stock saw additional gains connected to meme stock trading and news that CEO Carrie Wheeler had stepped down from her post. Developments for the real estate market and outlook on interest rates have also factored into the company's gains, but there's clearly a lot of speculative investing at play here. While a surge of interest from retail traders has helped power big gains for the stock, meme trading on the stock opens the door for big downside volatility -- and that appears to be what played out today.

What's next for Opendoor?

With today's pullback, Opendoor now has a market capitalization of roughly $3 billion and is valued at approximately 73% of this year's expected sales. Its stock is also still down roughly 89% from its lifetime high.

While the stock could see more explosive gains in conjunction with support from retail investors or new institutional players, the company carries a high debt load and has yet to achieve profitability. I certainly wouldn't bet against Opendoor with a short position right now, but the business's fundamentals suggest the stock is a very risky play.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,162!*

Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Keith Noonan 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.