OPEN Stock Rallies Ahead Of Q4 Report After Lennar Bet: Can Results Hold The Gains?

• Opendoor is expected to report a 45% decline in its fourth-quarter revenue, according to analysts.
• Retail investors are looking for signals around profitability and an upbeat outlook for the new year.
• Stocktwits’ Michele Steele will be interviewing Opendoor CEO Kaz Nehatian on Thursday evening. Readers are invited to post questions.

Investors are entering Opendoor Technologies’ results day on a high note.

On Wednesday, new filings showed that one of the U.S.’s largest homebuilders, Lennar Corp., picked up a stake in the online real-estate platform. Lennar owned 18.8 million shares and several series of warrants for Opendoor, highlighting a sizable bullish bet. 

Bank of America also reportedly increased its stake in the company, while Vanguard disclosed an over 11% stake in the company last month.

Lennar’s Bet Sparks Gains

Opendoor shares rallied 7% on Wednesday, providing much-needed relief to the battered stock, which had been gradually declining and had shed over 50% from its peak in September. They gained 1.5% in the after-market session.

Q4 Earnings Expectations

Wall Street, however, remains cautious. Opendoor’s fourth-quarter results, scheduled for after the markets close, would be another make-or-break test for the company. 

For Q4, analysts expect Opendoor’s revenue to decline 45% to $594 million, and an adjusted loss of $0.09 per share, according to Koyfin.

Five out of the eight analysts covering the OPEN stock recommend ‘Hold,’ one recommends ‘Strong Buy,’ and two recommend ‘Sell’ or lower. Their average price target of $4.63 is $0.30 lower than the stock’s last close.

Retail Sentiment Turns Bullish 

In fact, Stocktwits sentiment flipped to ‘bullish’ as of early Thursday, from ‘bearish’ the previous day.

On Stocktwits, comments indicated that retail traders would be closely watching profitability metrics, 2026 guidance, and potential market-moving announcements.

“It's not looking good, and I'm not sure if earnings will save this at this point. It (stock) has declined significantly already and broke key supports… Something needs to change for the better, fast, or this won't end well, IMO,” said one user.

Past trends show that revenue growth has fallen sharply, even as the company flipped to a positive cash flow for the June and September quarters.

New CEO, New Strategy

A meme rally late last year brought scores of new investors to the stock, but the company’s unprofitability and declining sales growth have pressured shares since.

Opendoor brought in new management to run the company, led by new CEO Kaz Nejatian. In November, the company announced a substantial push into artificial intelligence and changes to its business model.

Those developments led to only monetary gains in the stock. In fact, investors are particularly concerned that gains even from recent policy catalysts – a curb on institutional investors from hoarding housing inventory, a cut in benchmark lending rate, and a warrants issue did not sustain either.

Upcoming: Stocktwits Interview With CEO 

Stocktwits’ Michele Steele will be interviewing Opendoor CEO Kaz Nehatian on Thursday evening. Readers are invited to post questions in this thread. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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