What Happened?

A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks. 

The main story? Investors are cashing in on a good run and feeling a bit cautious. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced. 

There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Apparel and Accessories company Figs (NYSE: FIGS) fell 4.7%. Is now the time to buy Figs? Access our full analysis report here, it’s free for active Edge members.
• Real Estate Services company Opendoor (NASDAQ: OPEN) fell 6.7%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free for active Edge members.
• Apparel and Accessories company ThredUp (NASDAQ: TDUP) fell 8.2%. Is now the time to buy ThredUp? Access our full analysis report here, it’s free for active Edge members.
• Real Estate Services company Offerpad (NYSE: OPAD) fell 10.1%. Is now the time to buy Offerpad? Access our full analysis report here, it’s free for active Edge members.
• Gaming Solutions company DraftKings (NASDAQ: DKNG) fell 4.4%. Is now the time to buy DraftKings? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Offerpad (OPAD)

Offerpad’s shares are extremely volatile and have had 97 moves greater than 5% over the last year. But moves this big are rare even for Offerpad and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 9 days ago when the stock dropped 18.1% on the news that it reported disappointing third-quarter results and issued a weak forecast for the upcoming quarter. 

The company missed Wall Street's expectations on several fronts. Revenue fell 36.2% year-on-year to $132.7 million, falling short of consensus estimates. Its GAAP loss of $0.37 per share was also wider than analysts had anticipated. The number of homes sold dropped by 40.3% year-on-year to 367, indicating a significant slowdown in activity. Adding to investor concerns, Offerpad's revenue guidance for the fourth quarter was underwhelming. The company's forecast of $112.5 million at the midpoint was 23.4% below analyst projections and implies a continued sales decline of 35.4% year-on-year.

Offerpad is down 26.7% since the beginning of the year, and at $1.97 per share, it is trading 68.5% below its 52-week high of $6.23 from August 2025. Investors who bought $1,000 worth of Offerpad’s shares at the IPO in December 2020 would now be looking at an investment worth $12.87.

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