Opendoor Technologies Inc. (NASDAQ:OPEN) stock traded lower Thursday after the company reported second-quarter results that beat Wall Street estimates but issued third-quarter revenue guidance that came in below expectations.
Second-Quarter Results Beat Estimates
Opendoor reported a second-quarter loss of 3 cents per share, beating analysts’ expectations for a loss of 7 cents per share.
Revenue totaled $883 million, surpassing the consensus estimate of $666.54 million. However, revenue declined from $1.57 billion in the year-ago quarter.
Third-Quarter Outlook Disappoints
The company forecast third-quarter revenue of about $1.098 billion, below the analyst consensus estimate of $1.132 billion.
Following the results, UBS maintained its Neutral rating on the stock and lowered its price forecast to $4.50.
Technical Analysis
The stock remains in a longer-term downtrend.
OPEN is trading about 17% below its 20-day simple moving average of $4.15 and 37.3% below its 200-day simple moving average of $5.48.
The 20-day moving average remains below the 50-day average, while the 50-day average continues to trade below the 200-day average, maintaining a bearish “death cross” pattern formed in March.
Momentum indicators also remain weak. The MACD is below its signal line, suggesting buying momentum continues to fade.
Traders are watching resistance near $4.15, which aligns with the 20-day moving average. Immediate support sits near $3.44. A break below that level could send the shares toward the lower end of their recent trading range.
ETF Exposure
The stock is a holding in the Defiance Retail Kings ETF (NASDAQ:RKNG), where it represents about 3.7% of the portfolio. Fund inflows or outflows could influence demand for the shares.
OPEN Stock Price Activity: Opendoor Technologies shares were down 8.24% at $3.45 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock