Opendoor Technologies Inc (NASDAQ:OPEN) shares are pushing higher Thursday as momentum continues to carry the stock despite a short report this week, which raised questions about the company’s path to profitability. Here’s what you should know.
- Opendoor Technologies stock is charging ahead with explosive momentum. Why is OPEN stock surging?
Short Report Raises Questions About Opendoor 2.0
On Wednesday, a short report took aim at the company’s revised strategy dubbed Opendoor 2.0 which shifts the business toward a platform-based model designed to reduce inventory risk, shorten holding periods and lean more heavily on AI to evaluate transactions. The report argued that the underlying economics remain challenged pointing to consistent losses, an unusually large stock compensation expense and a slow-moving housing market that makes quick inventory turnover difficult without sacrificing margins.
The bears contend the stock’s current valuation at roughly four times book value prices in a business model that has yet to be proven. Bulls appear to be looking past those concerns for now.
Opendoor (OPEN) Critical Levels to Watch
From a technical standpoint the stock is trading above its near and medium term trend gauges sitting approximately 15% above its 20-day moving average, 11.2% above its 50-day and 9% above its 100-day, which may be helping drive strength. The longer-term picture is more complicated with the stock still about 9.5% below its 200-day moving average where overhead supply could slow further progress.
Momentum is constructive with MACD above its signal line and a positive histogram suggesting the recent trend is strengthening.
- Key Resistance: $5.50 — A nearby round‑number zone where rallies often lose momentum, especially with price still sitting under the 200‑day simple moving average at $5.85.
- Key Support: $4.50 — A close‑by floor positioned just under the 20‑day simple moving average at $4.61, making it a practical line in the sand for the current upswing.
Opendoor (OPEN) Benzinga Edge Scorecard Analysis
Benzinga Edge gives the stock a momentum score of 98.78 reflecting strong relative strength versus the broader market. Key resistance sits at $5.50 near a round number level that also sits just below the 200-day moving average while $4.50 represents the nearest meaningful support below current prices.
OPEN Shares Are Booming
OPEN Price Action: Opendoor shares were up 9.81% at $5.26 at the time of publication on Thursday, according to Benzinga Pro.
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