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Opendoor shares drop 7% after CEO says profit timeline slipped
The decline coincided with a three-year high in Treasury yields, a backdrop that can raise financing costs for the home inventory Opendoor carries.
Opendoor Technologies shares fell about 7% to $2.79 in early Thursday trading, extending a slide that has left the stock down 51% year to date, as investors weighed two pressures hitting the business at the same time, according to Yahoo Finance.
The companys CEO, Kaz Nejatian, said the adjusted net income break-even timeline has slipped by six to eight weeks, while benchmark Treasury note yields climbed to a three-year high during the same week.
Yahoo Finance notes that rates can matter more for Opendoor than for some other housing models because Opendoor buys homes onto its own balance sheet and carries inventory until resale, so higher long-term yields can increase interest expense and also slow how quickly homes clear at target margins.
In parallel, the report points to other macro factors, including WTI crude pushing above $100 on the Iran conflict, wholesale inflation coming in line with expectations, and the Federal Reserve meeting next week with meaningful rate-hike risk.
Latest closeWTI crude $97.01 ▲4.3%