Why I'm Selling My Opendoor Shares | 51% Crash YTD!
In a Nutshell
The speaker is selling Opendoor because the company remains unprofitable with $1.3B in losses on $3.9B revenue, has declining revenue, and faces headwinds from rising mortgage rates. Despite a 50-61% YTD crash, community members continue promoting the stock while down significantly and refusing to show their actual positions. The speaker views it as a failing house-flipping business with poor fundamentals and technicals, preferring to stay in cash rather than hold through upcoming earnings.
These notes were generated by AI and may contain inaccuracies.
Opendoor is described as one of the worst performing stocks of 2026, down 61% from its high of $10 per share to current lows. From January 2026 to present, the stock has declined 50% during one of the most bullish AI rallies, making it one of the worst performing stocks while overall markets have been incredibly bullish. On the day of this recording, Opendoor lost 12% of its value and broke below the psychological support of $4 per share.
The company was a failing business before under new management, which promised substantial improvements to investors. The stock had an "insane run" from 50 cents per share to highs of $10 per share, characterized as a meme-like rally. Despite this price movement, nothing changed fundamentally, and the company remains unprofitable.
The speaker criticizes the "Open Door Army" community for attacking anyone who disagrees with their views on the company. Community members are referred to as "bag holders" who are down 50% on their investment during a period when markets have been bullish. The speaker notes that community members rarely disclose their actual positions when encouraging others to buy.
A tweet circulated where an individual claimed to have a bad experience using Opendoor as a shareholder and announced they were selling their shares. This person stated they "no longer believe in the business model or its execution." The speaker reports that this individual received "verbal attacks" and "threats" for sharing their experience, whether true or not.
The speaker contrasts the emotional reaction to negative Opendoor opinions with their own approach, noting they own Nvidia and closed a MU trade making $2,000, and took an Intel trade making $4,800. They state that disagreement with their positions doesn't bother them because they have proper risk management. The speaker emphasizes that getting offended by differing opinions indicates uncertainty about one's own position.
The speaker references using Investing Pro software (affiliate link in description with discount) to analyze companies. They note that Opendoor is technically oversold and could recover, which is why they have no interest in shorting it. The stock is characterized as a momentum-based meme stock that can have short-lived rallies and catalysts that eventually fade, similar to GameStop and AMC.
The company has a negative P/E ratio and produced $3.9 billion in revenue but recorded $1.3 billion in losses. Revenue has been on a sharp decline. The speaker argues the business is essentially "a house flipper that's funded by hedge funds and has razor thin margins" despite labeling itself as an AI company. The company is not profitable and hasn't been profitable.
The speaker notes that oil prices are up 42% in the past 20 days, increasing the likelihood of Federal Reserve rate hikes. The 10-year Treasury yield is rising, which serves as a benchmark for mortgages. Higher mortgage rates make people less likely to buy homes, creating unfavorable conditions for the housing market and Opendoor's business model.
The speaker criticizes community members for being "down 25-50% bag holding the stock" while continuing to encourage others to buy. They note that community members refuse to post their actual gains or losses and don't show their overall positions. The speaker mentions a meme about "buy more, buy the dip" and questions "with what?"
The speaker emphasizes "don't fight the trend" - Opendoor represents a bearish trend with terrible fundamentals. The company loses $1.3 billion in net income. Earnings are scheduled to be reported in about two weeks, with the last earnings report being terrible. The stock is viewed as a momentum/meme stock suitable for trading when momentum is favorable, but not as a long-term investment.
The speaker expresses concern that beginners seeing community tweets might be encouraged to invest without understanding the risks. They note that community members who are "old, emotional, and running out of time" may be using margin and could be down significantly more than 50-60%. The speaker is "100% okay with missing out" on Opendoor.
The speaker concludes they see "nothing about that company is attractive" - it's not profitable, and market conditions with potential rate hikes are unfavorable. They prefer staying in cash rather than being invested in a failing business or falling stock price. Opendoor represents a "double whammy" of bad fundamentals and bad technicals.
Keep Ricky Gutierrez in your library
Save the videos and channels worth coming back to, and find them again in one place.
