Revenue easily surpassed analyst expectations in the fourth quarter
Shares of Opendoor Technologies Inc (NASDAQ:OPEN) are surging 15.5% to trade at $5.37, gapping higher after the real estate name posted an impressive Q4 revenue of $736 million, surpassing expectations of $594. The company said it expected to hit "net income positive" by the end of the year, as per a "12-month go-forward basis." Opendoor also reported a narrower-than-expected quarterly loss of $0.07 per share.
Today's bull gap has the stock eyeing a third-straight pop, its highest close in nearly a month, and its best daily performance since November. Despite sporting a 7% deficit for 2026, the equity remains up 264% year-over-year, with the ascending 260-day moving average looming below as a trendline of potential support.
Options traders have been leaning bearish ahead of the support. This is per OPEN's International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 10-day put/call volume ratio that ranks higher than 86% of readings from the last year.
Some of this skew is already shifting, with 144,000 calls across the tape so far, seven times the average intraday rate and more than four times the number of puts. Most popular is the February 5.50 call, set to expire after the bell today.
A short squeeze could be fueling today's gains, considering nearly 15% of OPEN's total available float is sold short. Analysts are also looking pessimistic, as heading into today 10 of the 11 covering brokerages sport a "hold" or worse recommendation. Should this bearish sentiment begin to unwind, it could trigger more bullish attention for the shares.