10 Most Volatile Stocks Under $3 For Day Trading

4. Opendoor Technologies Inc. (NASDAQ:OPEN)

Number of Hedge Fund Holders: 20

Opendoor Technologies Inc. (NASDAQ:OPEN) is a real estate technology company that operates an online platform for buying and selling residential properties. It uses data analytics and automation to provide instant home offers, streamline transactions, and reduce the complexities of traditional real estate processes. Sellers can receive cash offers and close quickly, while buyers access a marketplace of listed homes with digital touring and financing options. OPEN primarily generates revenue by purchasing homes, reselling them at a margin, and offering ancillary services such as financing and title insurance. The company operates in multiple US markets, targeting homeowners seeking speed and convenience in real estate transactions.

Opendoor Technologies Inc. (NASDAQ:OPEN) reported mixed results for Q4 2024 and the full year, with some improvements in financial performance despite ongoing challenges in the real estate market. The company exceeded its outlook for acquisitions, revenue, contribution margin, and adjusted EBITDA in Q4. Revenue for Q4 was $1.1 billion, up 25% YoY, while full-year revenue decreased to $5.2 billion from $6.9 billion in 2023. Contribution profit improved significantly, reaching $242 million for the full year compared to a loss of $258 million in 2023, with a contribution margin of 4.7%. Adjusted EBITDA loss narrowed to $142 million for the full year, a substantial improvement from the $627 million loss in 2023. The company ended the year with a strong balance sheet, including $1.1 billion in total capital and $6.9 billion in non-recourse asset-backed borrowing capacity.

Opendoor Technologies Inc. (NASDAQ:OPEN) is focusing on optimizing contribution profit dollars, exploring new revenue opportunities, and ensuring long-term value creation. The company is implementing strategies to enhance customer experience, improve pricing models, and align marketing efforts with seasonal patterns. Despite ongoing macro challenges in the real estate market, OPEN is expanding its offerings, including List with Opendoor and Marketplace, to serve more sellers and unlock new revenue opportunities. Management is committed to driving towards sustainable, profitable growth and expects to significantly reduce the adjusted net losses of the company in 2025. With an equity beta of 2.77, OPEN is one of the most volatile stocks under $3 for day trading.