OPAD - Why Are Offerpad and Opendoor Falling on Thursday?
The stock market was relatively flat on Thursday, with the S&P 500 nearly unchanged as of 1:30 p.m. ET and the Dow Jones Industrial Average and Nasdaq Composite each less than 0.3% away from the previous close.
However, the two pure-play iBuyers, Offerpad Solutions (NYSE: OPAD) and Opendoor Technologies (NASDAQ: OPEN) , were major underperformers. Offerpad was down by about 11% to a new all-time low, while Opendoor was down by nearly 9% on the day.
The reason for today's decline appears to be Offerpad's second-quarter earnings report, which was released on Wednesday afternoon. And while the business remained profitable in the challenging real estate environment, sales came in significantly below analyst expectations. The stock also got hit with a few analyst price target changes, including one by Goldman Sachs , which lowered its target price on Offerpad from $4.75 to just $2.25 per share.
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Why Are Offerpad and Opendoor Falling on Thursday?