Opendoor tumbles after third-quarter guidance disappoints
Opendoor Technologies’ first attempt to provide some fundamental footing for its massive flow-drive surge since late June looks like a flop, with shares down sharply after-hours.
That’s despite the online real estate company’s second-quarter results surprising to the upside:
Revenue: $1.6 billion (estimated $1.5 billion, guidance for $1.45 billion to $1.525 billion).
Adjusted EBITDA: $23 million (estimated $17.5 million, guidance for $10 to $20 million).
For the third quarter, however, it’s poised to take a step back in a disappointing way, with the prime months for resale activity in the rearview mirror. Management called for revenues of $800 million to $875 million (compared to a consensus estimate of $1.2 billion) on adjusted EBITDA of -$21 million to -$28 million (estimate -$3.5 million).
Opendoor has been the poster child for the meme stock renaissance that started in late July, trading a whopping 1.9 billion shares on July 21 amid a flurry of options activity and retail demand.
The market was braced for volatility on this report: the options-implied move in response to earnings is more than plus or minus 21%.
