Opendoor Technologies Inc. and Offerpad Solutions Inc. shares rallied in the extended session Wednesday after the online real-estate platforms both reported revenue and outlooks that topped the Wall Street consensus, a week after Zillow Group Inc.’s disastrous earnings.
Opendoor reported a third-quarter loss of $56.8 million, or 9 cents a share, compared with $80.9 million, or 91 cents a share, in the year-ago period. Revenue surged to $2.27 billion from $338.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 17 cents a share on revenue of $2.01 billion.
Opendoor forecast fourth-quarter revenue of $3.1 billion to $3.2 billion, while analysts had estimated $2.92 billion.
Despite buying more houses, Opendoor lost 1/9th as much money as Zillow, Offerpad is similar. I’m just going to sit here smugly and say I told you so. Zillow’s operational problems were not reflective of the ibuyer industry in general.