Why Opendoor Technologies Stock Is Soaring Today
Opendoor Technologies (NASDAQ: OPEN) reported quarterly results that fell short of expectations, but investors were more focused on the potential benefit of a new partnership, sending shares up as much as 25% on Friday. As of 12:36 p.m. ET, the stock had settled to a 21% gain.
Opendoor reported a loss of $0.09 per share in the second quarter on revenue of $4.2 billion. The revenue was slightly ahead of the consensus estimate, but analysts had been expecting the iBuying housing company to post a profit.
The issue, as it has been for all housing stocks, was the Federal Reserve's aggressive moves to curb inflation. The Fed's actions led to a spike in mortgage rates that at least temporarily stunned the housing market, causing a drop in the number of transactions and lower levels of home-price appreciation.
Source Fool.com
