Gevo shares jump as Q3 results top estimates, posts positive EBITDA
Investing.com -- Opendoor Technologies Inc (NASDAQ:OPEN) stock surged 20.5% Monday after JPMorgan analyst Dae Lee initiated coverage with an Overweight rating and established an $8 price target for December 2026.
The analyst highlighted that a "major transformation is underway" at the online real estate platform, with new management refounding the company and pivoting strategy. Lee noted that near-term volatility in results stems from the company clearing out impacts of the prior management’s risk-averse approach and legacy inventory.
Opendoor is already reducing spreads, which is driving an acceleration in home acquisitions in the fourth quarter as the company focuses on rebuilding transaction volume while targeting adjusted net income breakeven by the end of 2026, according to the analyst.
The company’s third-quarter revenue of $915 million fell 34% YoY with homes sold declining 29% YoY to 2,568. While gross profit of $66 million (7.2% margin) exceeded expectations, contribution profit fell to $20 million (2.2% margin) and adjusted EBITDA loss widened to $33 million.
For the fourth quarter, management expects acquisitions to grow at least 35% sequentially, though revenue is projected to decline approximately 35% quarter-over-quarter due to low starting inventory. Contribution margin is guided below the third quarter’s 2.2% as legacy homes continue to weigh on results.
The positive analyst outlook comes after Opendoor recently executed a $1.2 billion registered direct equity offering, using proceeds to repurchase approximately $264 million of its 2030 Convertible Senior Notes. The company also declared a special warrant dividend to shareholders of record as of November 18, 2025.
The stock’s rally follows weeks of decline, with shares dropping sharply in early November after reporting wider-than-expected third-quarter losses.
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