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One of the worlds newest so-called meme stocks is having a very bad day today. Shares in Opendoor Technologies (Nasdaq: OPEN) are currently slumping more than 20% in premarket trading. Heres what you need to know. Opendoor reports its Q2 2025 results Yesterday, Opendoor announced second-quarter results for its fiscal 2025. Heres what Opendoor reported: Revenue of $1.6 billion Gross profit of $128 million Net loss of $29 million The company also revealed that it had an inventory balance of 4,538 homes with a total value of $1.5 billion. Additionally, it said that during the quarter, it purchased 1,757 homes, which was down 51% from the previous quarter and down 63% from the same quarter a year earlier. For its current Q3, Opendoor issued revenue guidance of $800 million to $875 million. But unfortunately for the companys shareholders, after Opendoor announced its results, the stock plummeted over 20%. When are OPEN shares down so much? There are a few reasons why OPEN shares have fallen so much since the company announced its results yesterday. The first is that the company reported a disappointing revenue guidance for the current Q3. It said it expects revenue of $800 million to $875 million. As noted by CNBC, that would represent a 36% decline from the same period a year ago. This revenue decline is partly expected due to the current challenging home-buying environment. High interest rates, which in turn make mortgage rates high, deter home buyers, resulting in decreased home sales. Another possible factor in Opendoors stock price slump today is that the company did not give much detailed information on its evolving business model, which it has dubbed Product to Platform. This new model will see Opendoor moving from a single product to a distributed platform with multiple offerings delivered through agents, according to comments from CEO Carrie A. Wheeler on the companys earnings call. When a company radically changes its business model, it introduces uncertaintyand uncertainty makes investors nervous. A third possible reason why OPEN stock is falling so much today is much simpler: It’s a meme stock, and meme stocks are highly volatile. Yesterday’s earnings announcement was the first since OPEN stock went stratospheric last month, and the lackluster results may be prompting some investors who got in at the right time to take profits. OPEN stocks wild summer Over the past month, Opendoors stock has been on a wild ride. Starting around mid-July, the stock surged in popularity within the meme stock community. Shares went from being worth around 75 cents each to surging to over $3.20 per share in little more than a week. As of yesterdays close, OPEN shares had surged more than 313% in the past month. However, as todays 20% share price drop shows, when it comes to meme stocks, what goes up rapidly can come down just as rapidly.
Category:
E-Commerce
Cyberattacks are on the rise, and artificial intelligence is making it easier for bad actors to scam individuals and businesses alike. In response, Visa is launching a new initiative that offers businesses tailored data to better combat cybercrime. Today, August 6, Visa unveils its new Cybersecurity Advisory Practice, providing customers and businesses with access to advanced tools designed to protect against the growing threat of cybercrime. Over the past year, the digital payments giant says it has invested billions in cybersecurity infrastructure and enhanced its global payments network by deploying generative AI to detect and block fraud. With its latest initiative, Visa plans to share those capabilities directly with clients to address mounting concerns around information security in the AI era. The new practice will leverage Visas internal fraud-fighting insights and adapt them to meet the specific needs of each business. Utilizing AI and drawing from a team of 2,000 consultants, data scientists, and product experts, Visa aims to help clients defend against increasingly sophisticated cyberattacks. Visas Cybersecurity Advisory Practice emerged from what Carl Rutstein, the companys global head of advisory services, describes as a clear need from clients for deeper, more proactive support amid a rapidly evolving threat landscape. As online commerce grows, so does cybercrime. There has been a nearly 300% increase in internet fraud just over the last few years, he tells Fast Company, prompting businesses to seek new ways to proactively identify, evaluate, and obviously mitigate emerging cyber threats. According to cybersecurity and compliance firm VikingCloud, cybercrime could cost businesses as much as $10.5 trillion by years end, and up to $15.63 trillion by 2029. The FBI reported that in 2024 the top three internet crimes were phishing/spoofing, extortion, and personal data breaches. Cybercriminals are increasingly turning to AI, using it to crack passwords, manipulate or poison data, and create deepfakes. Rutstein says fraud has escalated as bad actors adopt AI to exploit the financial system. Visa, he notes, blocked $14 million in presumed fraud in 2024a 30% increase over 2023. The Cybersecurity Advisory Practice is intended to build on Visas current payment ecosystem, offering services such as dark web threat detection, vulnerability testing, enumeration defense, employee training, and cybersecurity maturity assessments. Other digital payments providers are also responding to the growing threat. Just last month, Mastercard announced its Security Solutions Program, which includes financial investments in startups that are developing cybersecurity and fraud prevention technologies. Much like Mastercards strategy of investing in next-gen security, Visa says its approach focuses on advising businesses of all sizes directly, emphasizing a proactive, rather than reactive, stance. We built it to just help our clients, Rutstein said. We do exactly what you would expect an advisory firm connected to a network to be doing, and therefore these are resources and capabilities that are available.
Category:
E-Commerce
Two of the tech industrys AI hardware companies are seeing their share prices drop after they reported their most recent quarterly earnings after the closing bell yesterday. The stock prices of Super Micro Computer, Inc. (Nasdaq: SMCI) and Advanced Micro Devices, Inc. (Nasdaq: AMD) are down significantly over investor fears that artificial intelligence-related growth is lagging expectations. Heres what you need to know. Supermicro misses expectations Shares in Super Micro Computer (aka Supermicro) are trading sharply lower in premarket as of the time of this writing. Currently, SMCI shares are down more than 16.2% to $47.95. The reason for this dramatic stock price drop has everything to do with the companys just-announced Q4 2025 results. The server maker announced Q4 net sales of $5.8 billion, which was up significantly from the $4.6 billion it posted in Q3. Net income for the quarter was $195 million, which was also up from Q3, when the company posted $109 million in net income. Finally, its Q4 earnings per share (EPS) were 41 cents, up from 31 cents in Q3. So if Supermicro’s results were up over the last quarter, why is the stock falling? Its a combination of expectations and sales that fall short of past quarters. While Supermicro posted net income of $195 millionaround $86 million more than the previous quarterthat was down from its $297 million in net income during the same quarter a year earlier. As noted by CNBC, the year-over-year Q4 net income decline is partially attributable to Supermicro’s costs from President Trumps tariffs. However, costs arent the only thing bugging Super Micro Computer investors. The company’s results also didnt meet investor expectations. LSEG consensus estimates for the quarter were an EPS of 44 cents, three cents short of what Supermicro delivered. Investors also expected revenue of $5.89 billionmore than the $5.76 billion that Supermicro reported. As Reuters notes, many attribute the companys lower-than-estimated revenue to Supermicro losing out on AI server sales to its bigger competitors, including Dell and HP. Finally, Super Micro Computer also disappointed investors by forecasting full-year fiscal 2026 net sales to total at least $33 billion. Previously, the company had said it expected net sales of around $40 billion in 2026. All this has led to growth fears: While the AI revolution may mean high demand for servers that are needed for artificial intelligence, Supermicro isnt benefiting from that demand as much as hoped. AMD missed expectations, too AI chipmaker AMD is also facing stock price declines this morningthough not as severe as Super Micros. The company posted its Q2 2025 results after the bell yesterday, and since then its shares are down nearly 7% to $162.16 in premarket trading as of the time of this writing. AMD posted a Q2 revenue of $7.7 billion and net income of $781 million. Its earnings per share (EPS) for the quarter was 48 cents. However, as with Supermicro, AMDs EPS was below expectations. As noted by CNBC, the LSEG consensus was that AMD would report an EPS of 49 cents. The company also suffered hundreds of millions in lost sales after the Trump administration banned sales of its MI308 chips to China. However, this ban may soon be reversed. As Reuters notes, AMD did post a 14% revenue rise in its important data center unit, yet this sum of $3.2 billion was also slightly below expectations, suggesting investors fear that AMD isnt benefiting to the maximum degree that it can from the AI chip boom. Stock price history and future challenges Before todays premarket decline for Supermicro and AMD, shares in both companies have had a good run in 2025. As of yesterdays close of market, AMD shares had risen 44% in 2025. SMCI shares surged 87% in the same period. Looking back over the past 12 months, AMD shares were up nearly 30% as of yesterdays close. SMCI shares were down nearly 6% for the same period. However, the company had been plagued last year and earlier this year by an accounting crisis that had risked its delisting from the Nasdaq. It eventually filed delinquent forms with the Securities and Exchange Commission (SEC) in February.
Category:
E-Commerce
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