OPEN’s Home Acquisitions Rise Sharply — Retail Traders Stay On Sidelines As Stock Trades 38% Off Year’s High

• Opendoor said weekly acquisition contracts jumped 21% to 658.
• Sentiment for OPEN was also driven by the company’s recent acquisition of tech firm Doma.
• Stocktwits sentiment was ‘bearish,’ and message volume dropped 50% over the past week as OPEN stock continues to slide.

Opendoor Technologies’ surge in home acquisitions generated buzz online on Tuesday, but retail investors, mindful of the stock’s prolonged downtrend, remained cautious.

Social media platform X was abuzz with user commentary after Opendoor revealed its weekly acquisition contracts jumped 21% to 658 week over week, with many backing CEO Kaz Nejatian and the company’s turnaround narrative.
 

Under Nejatian, who took over last September, Opendoor began publicly displaying home acquisition data. Opendoor buys houses and flips them for a profit. Although acquiring more homes shows growth in one side of the business, it may not give the best picture for the overall company.

OPEN’s Doma Acquisition

Sentiment was also driven by a new acquisition. Last week, Opendoor acquired Doma, which offers software that makes real estate closings, specifically title, escrow and underwriting, faster and more affordable. 

“We’re in the process of completely rebuilding and automating, like most of the other pieces of technology that Opendoor is working on ... to eliminate time and money for customers,” Opendoor President Lucas Matheson told CNBC at the time.

Since becoming CEO, Nejatian has brought in new management, trimmed the workforce, and shifted the focus to AI tools and lending services. A 4.99% mortgage product offering below-market rates has generated significant interest in the market.

Opendoor emerged as a top meme stock, surging more than 2,000% in a two-month stretch last year, but has since slid steadily from September, leaving some traders frustrated. Opendoor shares are down 22% year-to-date.

Retail, Analyst View On OPEN

Given the recent slide, retail investors continue to remain on the sidelines. On Stocktwits, the sentiment has oscillated between ‘neutral’ and ‘bearish’ over the past two weeks and message volume for the ticker has dropped 50% over the past seven days.

“Low volume, nothing but small time traders/flippers/shorts that are irrelevant in the long term. People that use the market to pay monthly bills will never generate wealth. Let them make their chump change, investors will use the opportunity to accumulate shares,” said a user.

On the other hand, a trader criticized hedge fund manager Eric Jackson, who sparked the initial rally in OPEN shares and has been a vocal supporter of the company. 

“Eric is the subject and butt end of jokes in the financial markets! He is never seen with or mentioned with no Reputable market players, leaders or CEOs!  $OPEN one time SELFIES  with Kaz and Keith don’t count!” they said.

Analysts are on the fence as well. Currently, five out of eight analysts recommend ‘Hold,’ two recommend ‘Sell’ or lower, and one recommends ‘Strong Buy,’ per Koyfin. Their average price target is $40.55, which is $0.20 below the stock’s last closing price.

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