Opendoor Technologies Inc (OPEN) saw its stock plummet 6.29% in the after-hours session on Thursday, following the release of its fourth-quarter 2024 earnings results.
The online real estate platform reported a wider net loss of $113 million for the quarter, compared to a loss of $78 million in the same period last year. This came despite a 25.9% increase in revenue to $1.1 billion, exceeding analyst estimates.
The disappointing earnings were largely attributed to the ongoing volatility in the housing market, with elevated mortgage rates and low inventory levels impacting buyer affordability and transaction volumes. Opendoor also faced challenges with inventory management, as a larger percentage of homes stayed on the market for more than 120 days.
While the company made efforts to streamline operations and optimize cost structure, the market headwinds weighed heavily on its financial performance. Opendoor's CEO Carrie Wheeler acknowledged the challenges, stating that the company has become "a leaner, more efficient business" to address the slow housing market.
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