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    Opendoor Technologies (OPEN) Is Down 7.1% After Multi-Index Removal Amid AI Pivot - What's Changed

    Simply Wall St·12/07/2025 08:18:17
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    • In late November 2025, Opendoor Technologies was removed from multiple S&P indices, including the S&P Total Market Index and S&P Global BMI, reflecting weaker index eligibility amid ongoing business pressures.
    • This index exclusion comes as Opendoor is absorbing larger-than-expected quarterly losses while overhauling its model toward a software- and AI-driven home-selling platform, intensifying questions about its transition.
    • We’ll now examine how Opendoor’s multi-index removal, alongside its AI-focused overhaul, may reshape the company’s investment narrative.

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    Opendoor Technologies Investment Narrative Recap

    To own Opendoor today, you need to believe it can turn its capital intensive iBuying engine into a scalable, software and AI powered platform that improves margins and manages housing risk. The multi index removal itself is unlikely to change the near term catalyst, which still centers on proving that higher acquisition volumes can be handled profitably, but it does underline the biggest risk right now: continued losses and constrained financial flexibility in a choppy housing market.

    The recent Q3 2025 results bring this into focus, with a US$90 million quarterly net loss and a follow on equity offering filed soon after. That combination is highly relevant to the index exits, because it highlights both the need to fund Opendoor’s AI heavy overhaul and the risk that further dilution or balance sheet strain could blunt the upside from better pricing models, product expansion and higher conversion rates if execution falls short.

    Yet behind the AI story, investors should be aware that Opendoor’s high levels of nonrecourse asset backed borrowings could...

    Read the full narrative on Opendoor Technologies (it's free!)

    Opendoor Technologies’ narrative projects $4.7 billion revenue and $239.7 million earnings by 2028. This assumes revenues decline by 2.9% per year and an earnings increase of about $544.7 million from -$305.0 million today.

    Uncover how Opendoor Technologies' forecasts yield a $2.99 fair value, a 58% downside to its current price.

    Exploring Other Perspectives

    OPEN Community Fair Values as at Dec 2025
    OPEN Community Fair Values as at Dec 2025

    Twenty three members of the Simply Wall St Community estimate Opendoor’s fair value between US$0.70 and US$30.94 per share, reflecting highly divergent views. Against that wide dispersion, Opendoor’s exposure to inventory staying on market beyond 120 days raises important questions about earnings sensitivity that readers may want to explore through multiple viewpoints.

    Explore 23 other fair value estimates on Opendoor Technologies - why the stock might be worth less than half the current price!

    Build Your Own Opendoor Technologies Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.