Shares of Opendoor Technologies Inc (NASDAQ: OPEN) plummeted 13.87% in after-hours trading on Thursday following the release of its disappointing third-quarter earnings report and weak fourth-quarter outlook. The significant drop comes as the real estate technology company's results fell short of analyst expectations, sparking a sell-off among investors.

Opendoor reported a quarterly loss of $0.12 per share, missing the analyst consensus estimate of $0.07 by a considerable margin. This represents a wider loss compared to the $0.11 per share loss in the same period last year. The company's quarterly sales of $915 million, while surpassing analyst estimates of $849.588 million by 7.70%, still showed a substantial 33.55% year-over-year decrease from $1.377 billion in the previous year.

Adding to the downward pressure on the stock, Opendoor provided a weak outlook for the fourth quarter. The company expects Q4 revenue to decrease by approximately 35% quarter-over-quarter, citing low inventory levels from the third quarter's reduced inventory volumes. This guidance suggests ongoing challenges in the real estate market and raised concerns about Opendoor's growth trajectory. Despite the company's efforts to rebrand itself as a "software and AI company" under new CEO Kaz Nejatian, investors seem skeptical about the near-term prospects, leading to the sharp decline in stock price.