Opendoor Technologies Inc. saw its shares surge sharply on Thursday, climbing nearly 6% as investors reacted to renewed optimism around the company’s near-term execution and revenue trajectory. The move pushed OPEN to the top end of its recent trading range, even as profitability remains elusive.

The rally comes amid improving operational signals that suggest Opendoor may be stabilizing after a prolonged housing market downturn. While earnings remain negative, revenue expectations and narrowing losses are beginning to reshape investor sentiment around the digital real estate platform.

Market Reaction Reflects Improving Confidence

Opendoor closed the session at $6.67, marking a 5.87% gain on the day, before edging slightly higher in after-hours trading. Volume remained elevated, indicating broad participation in the move rather than a thin, technical bounce.

Despite still trading well below its 52-week high of $10.87, the stock has shown signs of forming a base, with buyers stepping in aggressively near the $6.30 level. The recent price action suggests that downside expectations may be moderating as the company demonstrates more consistent execution.

Earnings Trends Show Gradual Stabilization

Recent earnings data points to incremental improvement. In the most recent quarter, Opendoor reported an adjusted loss of $0.11 per share, beating analyst expectations of a $0.14 loss. This marked the company’s third earnings beat in the last four quarters, highlighting progress in cost controls and pricing discipline.

However, the prior quarter did see a modest earnings miss, underscoring that the turnaround remains uneven. Analysts now expect losses to continue through 2026, though projections suggest they may narrow over time if housing market conditions stabilize.

Revenue Outlook Remains the Key Catalyst

Revenue trends are emerging as the primary driver of optimism. For the most recent reported quarter, Opendoor generated approximately $915 million in revenue, while analysts expect revenue to rebound meaningfully in upcoming quarters.

Consensus estimates point to more than $1 billion in revenue for the next quarter, with full-year revenue projected above $4.2 billion. While these figures remain below prior cycle peaks, the trajectory suggests that transaction volumes may be recovering as affordability pressures ease and inventory dynamics improve.

Valuation Reflects High Risk, High Optionality

Opendoor remains unprofitable, with trailing twelve-month earnings still firmly negative. As a result, traditional valuation metrics such as price-to-earnings remain unavailable, leaving investors to weigh the company’s long-term platform potential against near-term execution risk.

The stock’s elevated beta highlights its sensitivity to broader market sentiment and housing-related headlines. Any sustained improvement in mortgage rates or housing activity could provide further upside, while renewed macro pressure would likely weigh heavily on shares.

Looking Ahead

With its next earnings report approaching later this year, Opendoor sits at a critical juncture. Investors are increasingly focused on whether revenue growth can persist without reigniting inventory risk or margin compression.

While the company is not yet out of the woods, the latest price action suggests the market is beginning to price in the possibility of stabilization rather than continued deterioration.