Why Opendoor Shares Are Tumbling Today
Shares of Opendoor Technologies (NASDAQ: OPEN) fell 20% on Friday morning after the real estate company reported a worse-than-expected loss. There was a lot to like in the report, but investors haven't shown much patience with young, unprofitable companies so far this earnings season, and Opendoor is proving to be no exception.
Opendoor, a residential real estate iBuyer that acquires houses directly from sellers and then resells them, lost $0.31 per share in the quarter on revenue of $3.82 billion. The earnings missed Wall Street's expectation for a $0.18-per-share loss, though revenue did come in ahead of the $3.17 billion estimate.
For the year, Opendoor reported a net loss of $662 million, more than double the $253 million loss reported in 2020. The higher loss was primarily driven by stock-based compensation, which ballooned to $536 million compared to $38 million in 2020.
Source Fool.com
