Key Points
Following an explosive rally over the last week, Opendoor stock is giving up some of its gains.
Inflation-related risks and a concerning AI report from MIT are driving valuation pullbacks for stocks today.
Opendoor has been a hot meme-stock play recently, and investors seem to be excited about the company getting a new CEO.
10 stocks we like better than Opendoor Technologies ›
Opendoor Technologies (NASDAQ: OPEN) stock is selling off rapidly in Wednesday’s trading. The company’s share price had fallen 8.2% as of 12:45 p.m. ET today and had been down as much as 13% at the start of the day’s trading.
While there doesn’t appear to be any major business-specific news driving the stock pullback, the real estate specialist is losing ground amid concerns about inflation and valuations for artificial intelligence (AI) stocks that are affecting the broader market. Today’s sell-off also comes on the heels of a huge pop for the stock over the last week. Even with a recent valuation contraction, the company’s share price is up 333% over the last three months as of this writing.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Image source: Getty Images.
Opendoor stock sinks on inflation and AI concerns
Growth stocks and speculative investment plays are suffering sell-offs in Wednesday’s trading as investors react to unfavorable indicators on inflation and a new report from the Massachusetts Institute of Technology (MIT) that has raised questions about business applications for generative AI.
Following last week’s Producer Price Index report from the Bureau of Labor Statistics that showed levels of inflation that were much higher than expected, Home Depot and Target issued quarterly reports and commentary this week that seemingly supported the thesis that rising inflation will begin showing up in the consumer economy.
Adding to bearish pressures for stocks, new research from MIT suggests that 95% of businesses are getting no real value from money they have poured into generative AI.
What’s next for Opendoor?
The stock recently saw a big surge following news that CEO Carrie Wheeler is stepping down from her position, and another round of bullish commentary from EMJ Capital founder Eric Jackson. The company’s share price has seen an incredible rally this year thanks in part to meme-stock momentum and investors betting that the stock could see a Carvana-like rally.
Opendoor stock is still down 91% from the high it hit in 2021 and still has explosive potential, but investors should understand that the company looks like a very high-risk play.
Should you invest $1,000 in Opendoor Technologies right now?
Before you buy stock in Opendoor Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $654,781!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,076,588!*
Now, it’s worth noting Stock Advisor’s total average return is 1,055% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 18, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Target. The Motley Fool has a disclosure policy.
