Opendoor Technologies Inc. (NASDAQ:OPEN) rebounded as much as 21 percent in intraday trading on Thursday to $2.34 apiece as traders snapped up shares at its 52-week low.
During the session, the stock—highly regarded as a meme stock—dropped to a record low of $1.93 before bouncing back to end the day up by 16.04 percent at $2.31 apiece. The rally was supported by a sharp fall in Treasury yields that same day, making other investment vehicles, such as real estate, more attractive.
US Treasury yields headed for their largest daily drop since last year, as investors flocked to the asset amid the ongoing selloff in technology stocks. The drop was triggered by fears for AI buildout borrowings over the possibility of higher interest rates.
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How Opendoor Fared in Q3
Macroeconomic issues aside, investors appeared to have grown more pessimistic about Opendoor Technologies Inc. in the third quarter of the year, having slashed its share price by a whopping 48.7 percent quarter-on-quarter, to only $2.37 as of end-September, from $4.62 on June 30, 2026.
The drop was significantly higher than the 14 percent sequential decline in the second quarter and the 19.7 percent decline in the first three months of the year.
The decline can be attributed to a combination of macroeconomic pressures such as higher interest rates, a sluggish real estate market, weak consumer confidence, and concerns about its ability for a turnaround, among others.
Hedge Fund Conviction Weakens
Institutional sentiment also weakened in the second quarter of the year, as quarter-on-quarter conviction halved alongside the decline in the number of hedge funds.
During the period, 36 hedge funds held positions in the stock, down from 39 in the first quarter of the year.
More notably, its existing investors disposed of huge positions, with combined holdings ending at $156.2 million versus $315 million in the first quarter of the year.
What to Watch Next?
The Federal Reserve’s upcoming interest rate decision at its Federal Open Market Committee meeting late this month is expected to largely influence the movement of Opendoor Technologies Inc. in the coming weeks, particularly as economists remain divided over the central bank’s policy outlook and future rate guidance.
Beyond macroeconomic developments, investors will also be watching out for the company’s earnings release in the first week of November, which could provide further guidance and insight into its growth trajectory and operating performance.
For the third quarter alone, the listed firm is targeting to grow its revenues by 10 to 15 percent year-on-year, while also expecting improvements in margins and velocity.
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