What Happened?

A number of stocks fell in the afternoon session after the major indices continued to pull back, with technology stocks accounting for most of the market's largest decliners. A key reason for this trend is that much of the recent market gains were concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed. 

Despite the downturn, some analysts viewed this as an opportunity to own some of the "Core AI winners." Dan Ives of Wedbush Securities commented, "In our view, the tech bull cycle will be well intact for at least another 2-3 years, given the trillions being spent on AI infrastructure/software/chips/power/apps looking ahead. This remains our tech playbook and investor roadmap." Additionally, mixed earnings reports from retailers, such as Target, have added to the market's weakness. Investors are closely monitoring these reports for insights into the broader economic health and the potential impact of new tariffs on inflation.

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:

• Real Estate Services company Opendoor (NASDAQ: OPEN) fell 8.5%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free.
• Internet of Things company SmartRent (NYSE: SMRT) fell 6.3%. Is now the time to buy SmartRent? Access our full analysis report here, it’s free.
• Therapeutics company Myriad Genetics (NASDAQ: MYGN) fell 4.7%. Is now the time to buy Myriad Genetics? Access our full analysis report here, it’s free.
• Social Networking company Reddit (NYSE: RDDT) fell 5%. Is now the time to buy Reddit? Access our full analysis report here, it’s free.
• Design Software company Unity (NYSE: U) fell 3.7%. Is now the time to buy Unity? Access our full analysis report here, it’s free.

Zooming In On Opendoor (OPEN)

Opendoor’s shares are extremely volatile and have had 88 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 23 hours ago when the stock dropped 3.3% on the news that investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.

Opendoor is up 102% since the beginning of the year, but at $3.21 per share, it is still trading 15.1% below its 52-week high of $3.78 from August 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $297.31.

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