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Luke Kawa

Opendoor drops after big bottom-line miss in Q3, with red ink poised to swell in Q4

Opendoor Technologies initially tanked in after-hours trading after the online real estate company posted an adjusted loss before interest, taxes, depreciation, and amortization that was much bigger than analysts had anticipated. The stock went on to pare that decline and trade in positive territory before reversing deep into the red.

The Q3 results:

  • Revenue: $915 million (compared to an estimate of $852.9 million and guidance for $800 million to $875 million)

  • Adjusted EBITDA: -$33 million (estimate: -$23.7 million, guidance: -$28 million to -$21 million)

The red ink is poised to swell in the fourth quarter, with management guiding for an adjusted loss “in the high $40 millions to mid $50 millions,” which is a shade negative compared to Wall Street’s view for adjusted EBITDA of -$47.6 million.

The company is aiming to break even on adjusted net income “by the end of 2026, measured on a 12-month go-forward basis.”

“Our path to profitability is clear: transact with more sellers, strengthen our unit economics through better pricing and resale speed, and drive operational efficiency by being ruthless on expenses,” CEO Kaz Nejatian said in the press release.

Management also announced a dividend of tradable warrants to be issued to shareholders of record as of 5 p.m. ET on November 18. For every 30 shares owned, the holder will receive warrants that expire on November 20, 2026, that entitles their holders to purchase one share at the exercise prices of $9, $13, and $17.

The third quarter was transformative for the company, as it rose to prominence after EMJ Capital hedge fund manager Eric Jackson posted a bullish thesis on X that sparked a wave of retail interest and buying activity. This newfound attention spurred real change at the company late in the quarter, as embattled CEO Carrie Wheeler resigned and was replaced by former Shopify COO Kaz Nejatian while cofounders Eric Wu and Keith Rabois joined the board of directors. That management overhaul spurred the stock’s largest one-day gain on record.

It’s far too soon for the new leadership to have made much of a mark on the company’s operational performance in these financials.

The company provided three key objectives that it believes will enable it to achieve its profitability target:

  1. Scale acquisitions

  2. Improve unit economics and resale velocity

  3. Build operating leverage

Its so-called “$OPEN Army” of passionate retail shareholders have no shortage of suggestions on what management should do to improve the company’s outlook going forward. They’ve had the opportunity to submit questions for the conference call ahead of time through Robinhood’s Say Technologies platform.

Judging by the questions that have received the most upvotes so far, Nejatian and interim CFO Christy Schwartz will be faced with these queries and more:

  • When will we see a dramatic change in profitability?

  • Is there a partnership looming with Robinhood?

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

On October 24, Opendoor surged amid a bevy of social media posts referencing unconfirmed rumors about the potential for the company to pursue the tokenization of real-world assets (its real estate), with Robinhood frequently mentioned as a would-be partner.

Year to date, Opendoor closed as low as $0.51 in late June and at a peak of $10.52 on September 11.

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J. Edward Moreno

FDA says it will take “decisive steps” against GLP-1 compounders, HHS refers Hims to DOJ for investigation

The Food and Drug Administration said it would take "decisive steps" to restrict GLP-1 compounding, a day after Hims & Hers announced that it would sell copies ofNovo Nordisk’sWegovy pill.

The FDA specifically called out Hims in the announcement. Additionally, Department of Health and Human Services' General Counsel Mike Stuart said in a post on X on Friday he has referred Hims to the Department of Justice "for investigation for potential violations by Hims of the Federal Food, Drug, and Cosmetic Act and applicable Title 18 provisions."

In a statement, Hims said the company "has always operated with a deep commitment to the safety and best interests of consumers and in compliance with applicable law."

"We have a long history of successfully working with regulators, and look forward to continuing to engage with the FDA to ensure safe access to affordable healthcare," they said.

This marks a significant shift in tone from the FDA, which has done little to prevent companies like Hims from marketing copies of Novo's lucrative weight loss drugs.

Shares of Hims fell 14% after hours. The stock had already taken a hit after FDA Commissioner Marty Makary said in an X post on Thursday that the agency would “take swift action against companies mass-marketing illegal copycat drugs.”

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Hims, long flying under regulators’ radar, finally strikes a nerve with its Wegovy pill copy

Hims, long flying under regulators’ radar, finally strikes a nerve with its Wegovy pill copy

The FDA specifically called out Hims in the announcement. Additionally, Department of Health and Human Services' General Counsel Mike Stuart said in a post on X on Friday he has referred Hims to the Department of Justice "for investigation for potential violations by Hims of the Federal Food, Drug, and Cosmetic Act and applicable Title 18 provisions."

In a statement, Hims said the company "has always operated with a deep commitment to the safety and best interests of consumers and in compliance with applicable law."

"We have a long history of successfully working with regulators, and look forward to continuing to engage with the FDA to ensure safe access to affordable healthcare," they said.

This marks a significant shift in tone from the FDA, which has done little to prevent companies like Hims from marketing copies of Novo's lucrative weight loss drugs.

Shares of Hims fell 14% after hours. The stock had already taken a hit after FDA Commissioner Marty Makary said in an X post on Thursday that the agency would “take swift action against companies mass-marketing illegal copycat drugs.”

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Tasha Matsumoto
15h
Tech rebound propels stocks to best day since May

The S&P 500, Nasdaq 100, and Russell 2000 all climbed higher as the AI trade was back on.

Chicago Bulls Dennis Rodman (91) and Michael Jordan (23) in action, rebounding vs Charlotte Hornets
Max Knoblauch

Airlines rise, continuing their volatile 2026, as US-Iran talks may foreshadow some oil supply relief

Airline stocks are surging on Friday, as the market appears to be pricing in some medium-term oil pricing relief following talks between the US and Iran. Iranian officials referred to the meeting as “a good beginning.”

Shares of budget carriers, which have tighter margins and are more sensitive to fluctuations in fuel costs, are leading the surge. Frontier Airlines and Allegiant up more than 13%, while major airlines like United Airlines, American Airlines, and Delta Air Lines are also up at least 6%. JetBlue and Alaska Air are similarly up about 6%.

The market more broadly is rebounding on Friday, with the S&P 500 up 1.6% and bitcoin recovering some of this week’s losses.

Airlines have been volatile to start 2026 amid geopolitical tensions, varying annual forecasts, and the impact of winter storms.

markets
Luke Kawa

The AI supply chain is soaring thanks to Amazon’s capex budget

If tech companies are going to spend way more than expected on capex, well, that means other companies are poised to benefit from that massive spending spree.

Amazon’s plan for $200 billion in business investment this year was the exclamation point to end a reporting period that saw every Magnificent 7 hyperscaler that provides guidance offer a 2026 capex budget well above what Wall Street had anticipated.

Here’s a look at the different parts of the supply chain that are soaring on the persistent demand for, and seeming scarcity of, AI compute:

Big Tech capital expenditure soared in 2025. It’s going up another 50% in 2026.

Big Tech capital expenditure soared in 2025. It’s going up another 50% in 2026.

Here’s a look at the different parts of the supply chain that are soaring on the persistent demand for, and seeming scarcity of, AI compute:

markets
Matt Phillips

For memory chips, the “parabolic price hike” is continuing to ramp higher

The remarkable run-up in prices for memory chips continued into early February, analysts at Bernstein Research say, driven largely by data center demand from hyperscalers and cloud service providers (CSP).

Prices for NAND flash memory wafers — a type of memory used in devices, as it retains data even when powered down — soared 35% between the end of 2025 and February 2.

Spot prices for DRAM — ubiquitous short-term data storage chips — jumped about 28% in that period. But that massively understates the remarkable shift in pricing for what were long seen as commodity tech hardware inputs. DRAM prices are more than 2,000% over the last year, while NAND prices are up more than 600% in that period.

The ongoing momentum provides still more support for memory chip plays like Micron and Sandisk, which have been big market winners in recent months.

In a note published earlier this week, Bernstein Research analysts wrote:

“The parabolic price hike continued in Jan. Indicated price increase for 1QCY26 is much stronger than we expected and we hence see upside to our near term memory pricing projection. Unrelenting CSP demand remained the main driver. PC and Mobile demand hasn’t been destroyed yet because of lean inventory & pull-forward purchase. Going forward price hike is expected to continue but likely at a slower rate, as PC and Mobile demand should contract meaningfully this year. Price however may stay elevated throughout this year, supported by CSP demand.”

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