TLDR
- Opendoor stock fell over 15% Tuesday despite being up 367% year-to-date and 268% over 12 months
- Hedge fund manager Eric Jackson, who sparked Opendoor’s rally, promoted a new stock pick Better Home & Finance
- Robinhood CIO Stephanie Guild says investors should watch digital real estate companies carefully as mortgage rates potentially decline
- Compass announced $4.2 billion acquisition of Anywhere Real Estate, creating larger competition in real estate market
- Guild warns investors to be cautious despite upside potential, noting Opendoor still doesn’t make money
Opendoor Technologies stock dropped more than 15% during Tuesday’s trading session. The decline came despite the company’s massive gains this year.
The stock remains up 367% year-to-date. Over the past 12 months, shares have climbed 268%.
The selloff appeared linked to two key developments. Hedge fund manager Eric Jackson announced a new stock pick on social media platform X.
Better ( $BETR) is the Shopify of mortgages.
It’s rebuilding a $15T industry from scratch with AI.$FIGR just IPO’ed & trades at 19× 2026 sales.
BETR trades at just 1× — but is growing faster than FIGR.I believe BETR is a potential 350-bagger in 2 years.
They laugh at BETR…— Eric Jackson (@ericjackson) September 22, 2025
Jackson had previously sparked Opendoor’s meme stock rally. He compared the company to Carvana and drove retail investor interest.
His latest post promoted Better Home & Finance Holding. He called it the “Shopify of mortgages” and predicted it could be a “100-bagger” investment.
Better Home & Finance surged 32% Tuesday. Trading volume reached 7 million shares compared to its daily average of 83,000.
Some Opendoor investors may have sold to chase Jackson’s new recommendation. This profit-taking likely contributed to Opendoor’s decline.
Real Estate Industry Consolidation
A separate development involved industry consolidation. Compass announced it would acquire Anywhere Real Estate in a $4.2 billion deal.
The transaction will create the largest U.S. residential real estate brokerage. This poses potential competition for Opendoor’s business model.
Opendoor aims to replace traditional real estate transactions. The company buys homes directly from sellers and resells them after renovations.
The Compass-Anywhere merger shows traditional real estate companies aren’t standing still. They’re adapting as the industry evolves.
Robinhood Markets chief investment officer Stephanie Guild discussed digital real estate stocks on Yahoo Finance. She said investors should understand companies like Opendoor and Better Home.
“They’re not going to go away,” Guild stated. She believes these firms remain relevant despite their losses.
Interest Rate Environment
Guild pointed to the challenging mortgage rate environment. Current 30-year fixed rates sit around 6.36%.
Many homeowners with low rates from previous years remain “frozen” in place. This limits housing supply and market mobility.
However, mortgage rates are slowly declining. Additional Federal Reserve rate cuts are expected this year.
“If interest rates are truly starting to fall, then these are companies that should benefit from increased activity,” Guild explained.
She emphasized the importance of understanding each company’s management and strategy. Investors should evaluate how firms plan to capitalize on falling rates.
Guild warned about elevated valuations despite the potential upside. “Stock prices are up a lot,” she noted.
Opendoor continues to lose money operationally. However, expectations call for less negative earnings in coming years.
The stock has shown extreme volatility recently. Shares dropped 23% from their intraday peak last week.
Double-digit daily moves have become common for the meme stock. This volatility reflects both retail investor speculation and fundamental business challenges.
New management is working on a turnaround plan. A sustained selloff could make recovery more difficult.
The broader real estate market faces headwinds from high mortgage costs. Digital real estate companies experience particularly uneven performance.
Opendoor closed Tuesday’s session at $7.09 per share. Pre-market trading showed a 2.4% rebound to $7.25.
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