Shares of Opendoor Technologies Inc ( OPEN ). plunged 20.56% during the pre-market trading session on Friday after the company reported third-quarter results.

‘Refounding’ The Company

The company reported a revenue of $915 million for the third quarter, surpassing the estimated $849.59 million. However, it recorded a loss of eight cents per share, missing the anticipated loss of seven cents per share.

Opendoor ( OPEN ) bought 1,169 homes during the quarter, a steep drop from 3,504 in the same period last year. It sold 2,568 homes, also down from 3,615 in the corresponding quarter a year earlier.

CEO Kaz Nejatian stated, “We are refounding Opendoor ( OPEN ) as a software and AI company.”

Nejatian outlined the company's outlook, projecting a 35% decline in fourth-quarter revenue as it undergoes rebuilding. Opendoor ( OPEN ) also expects an adjusted EBITDA loss for the quarter in the range of the high $40 million to mid-$50 million.

The stock fell over 10% in the after-market trading.

Opendoor's ( OPEN ) Wild Ride From Meme Hype

The third-quarter results come after a period of significant volatility for Opendoor ( OPEN ). The company’s stock was down by close to 20% over the past week, with hedge fund manager George Noble criticizing its “atrocious unit economics” and questioning its path to profitability. 

Earlier in July, Opendoor's ( OPEN ) stock emerged as a trending meme favorite after hedge fund manager Eric Jackson touted it as a potential "100-bagger". The stock quickly drew attention from meme traders due to its high short interest.

However, in September, shortly after Opendoor ( OPEN ) appointed a new CEO, Kaz Nejatian, CNBC commentator Jim Cramer hinted at ditching the stock. "We don’t want to be in a meme stock."

Benzinga's Edge Rankings place Opendoor ( OPEN ) in the 99th percentile for momentum and the 10th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here. 

Price Action: On a year-to-date basis, Opendoor ( OPEN ) surged 312.58%, as per Benzinga Pro. On Thursday, the stock plummeted 9.27% to close at $6.56.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.