Opendoor Technologies (OPEN 8.16%) was one of the meme stocks of the year in 2025. At one point, it rose from the dangerous precipice of a $0.51 stock price to shoot up 1,800% in less than three months. It has come down from those highs, but it remains elevated as investors are confident in its new CEO and are waiting to hear how the recovery is going.
The company reports fourth-quarter earnings for the first full quarter with the new CEO on Feb. 19. Should you buy the stock now?
Image source: Getty Images.
A disruptive platform in a hostile environment
Opendoor's iBuying model has not been able to succeed in the challenging real estate climate. Mortgage rates have remained stubbornly high despite the Federal Reserve lowering interest rates, although trends look like they might be starting to change.
That puts Opendoor, under the leadership of new CEO Kaz Nejatian, in a great position. Nejatian is already changing the company's model in several important ways, from cutting costs and using more artificial intelligence (AI) to focusing on more volume. He noted how management had been relying on outside consultants to do what should be their own job, and he's taking back that responsibility.
It still may be an uphill battle. Revenue continues to decline, down 34% year over year in the third quarter. Inventory fell from 6,288 to 3,319 at the end of the quarter, and Opendoor sold only 2,568 homes in the quarter, down from 3,165 the year before. It's still operating at a loss.
However, if his turnaround program coincides with a better housing market, the chance for success will be greatly enhanced.
NASDAQ: OPEN
Key Data Points
Risk vs. reward
Nejatian has created several goals and metrics to measure progress. He noted at the end of the third quarter that in one week at the end of October, Opendoor had gone under contract for 230 homes, in contrast with only 120 the last week of September.
He also put up a website where investors can watch progress in real time, so you don't need to wait for Feb. 19 to get an update. Weekly homes under contract hit a high of 303 the last week of January, and there's been a general upward tilt. There are also updates about product launches and improved workflows, such as escrow automation and Opendoor's new capabilities to make offers in every U.S. state.
If you are super risk-tolerant and can afford to lose the money you invest, you might want to buy Opendoor stock before the earnings report. It looks like there could be many signs of progress, and the stock could soar. But be prepared for it to plunge if progress isn't fast enough. Most investors should wait to invest responsibly in Opendoor stock when it has proven that a recovery is in progress.
