Opendoor shares drop 7% as profit timeline delays amid rising interest rates.

Opendoor's stock fell 7% after CEO Kaz Nejatian announced a 6-8 week delay in reaching adjusted net income break-even, coinciding with a spike in Treasury yields to a three-year high. The company's business model, which involves carrying home inventory on its balance sheet, is highly sensitive to rising interest rates, increasing financing costs and slowing home sales. Despite the setback, Opendoor expects 10-15% revenue growth this quarter and aims for profitability within a year. The broader housing sector also faces pressure from rising rates, with peers Offerpad and Zillow seeing smaller declines. Investors will watch upcoming consumer inflation data and the Federal Reserve meeting for further impact on rate-sensitive housing stocks.