By Katherine Hamilton
Opendoor Technologies shares slid after the company said sales dropped 35% amid a change in its operational strategy since going viral online.
The stock fell 15% to $5.58 in after-hours trading Thursday. Through the close, shares had more than quadrupled this year after meme-stock retail investors helped boost the price.
Along with its third quarter financial results, Opendoor laid out its new operational plan. The company, which has served as an online housing marketplace, will now focus on software and artificial intelligence, Chief Executive Kaz Nejatian said.
Opendoor will launch more than a dozen AI-powered products aimed at making selling, buying and owning a house easier, Nejatian said. That will include increasing acquisitions by at least 35%, improving pricing and resale speed, and eliminating expenses.
Nejatian is also making some cultural changes, including requiring employees to return to the office and eliminating reliance on consultants, he said.
Nejatian joined Opendoor in September after serving as chief operating officer at Shopify. He succeeded Carrie Wheeler, who resigned in August after retail investors called for her to step down as the company rose to meme-stock status. Opendoor's stock rose threefold in the month of July alone after it went viral online.
To fund these operational changes, Opendoor expects fourth-quarter revenue to decrease about 35% from the third quarter.
Sales in the third quarter were $915 million, a 34% drop from the year before. The company's loss widened to $90 million from $78 million.
Homes sold, purchased and under contract to be purchased all decreased. The number of homes in inventory by the end of the quarter was about half of what it was in the year-ago period.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
November 06, 2025 18:59 ET (23:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.