Opendoor Technologies Inc (OPEN) is set to continue its downward trend in pre-market trading on Wednesday, with shares falling 5.21% following a volatile session on Tuesday. This decline comes as the recent meme stock frenzy surrounding the company appears to be losing steam, prompting investors to reassess the underlying fundamentals of the online real estate platform.
Tuesday's trading saw Opendoor's stock tumble 6.25%, closing at $2.88 after opening at $3.89. The day was marked by extreme volatility, with trading volume soaring to approximately 1.05 billion shares - more than seven times the average daily volume. This sharp reversal follows a meteoric rise of over 300% in the past month, fueled largely by retail investor enthusiasm.
As the initial excitement wanes, investors seem to be refocusing on Opendoor's financial challenges. The company, which operates an online platform for buying and selling homes, has struggled with profitability and faces headwinds from a cooling real estate market. Analysts have pointed out that despite the recent stock price surge, Opendoor's fundamental business model remains challenging, with the company reporting consistent losses and experiencing a significant drop in revenue from its peak in 2022.
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