Opendoor Technologies Inc. shares fell to a new 52-week low of $2.42 on Tuesday as high mortgage rates continued to suppress housing activity and weigh on the company’s home-buying and selling business.
The company’s second-quarter results reflected the difficult market, with revenue down significantly year over year and net losses widening. Opendoor’s iBuyer model, which requires it to hold home inventory, exposes the company to changing property values and the costs of holding homes.
The stock has continued to decline over the past several weeks as investors weigh the prolonged housing downturn and the risks facing Opendoor’s business.