OPEN Stock: There Are 28 Million Reasons Opendoor Is Falling Today

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As the market opens this morning, shareholders are catching up on the news that affects their portfolios. Most days, when you hop online to see the goings on of your investments, you’re hoping to see mergers and acquisitions, a technological breakthrough, or maybe a stock buyback. What you don’t want to see is something that might dilute the value of your holding. Opendoor Technologies (NASDAQ:OPEN) holders are certainly feeling the pain today, and so is OPEN stock, thanks to the company’s announcement.

A picture of the OpenDoor (OPEN stock) app on a phone.
Source: PREMIO STOCK/Shutterstock.com

Opendoor is a San Francisco-based company that seeks to blur the lines between tech and real estate. It presents consumers with a way to quickly and efficiently sell residential real estate. The entire selling process is virtual, from preliminary offers, to touring, to the sale itself, making it a hugely effective tool in the novel coronavirus era for offloading real estate.

OPEN Stock Deflates as It Looks at Secondary Public Offering

Per an announcement today, Opendoor is looking to complete a secondary public offering. Pending Securities and Exchange Commission (SEC) approval, the company is looking to offer 28 million shares of OPEN stock. The seller is an unnamed stockholder. Of course, given that the seller is an existing shareholder, Opendoor will not receive any proceeds from the transaction. It will also not be offering up any new stock.

Still, the news spawns dilution worries among other OPEN stock shareholders. Secondary stock offerings are never exciting to existing shareholders, as they flood the stock’s float and dilute value, even without the creation of new stock.

Naturally, the news today is precipitating a selloff among OPEN stock holders. More than 11.8 million shares of the stock are already trading hands; Opendoor’s daily average trading volume rests at 11 million. Indeed, the mass offloading of the stock in the early minutes of trading is also sending OPEN values down. The stock has dropped off by 3.5% in the opening moments of today’s trading session.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


Article printed from InvestorPlace Media, https://investorplace.com/2021/09/open-stock-there-are-28-million-reasons-opendoor-is-falling-today/.

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