Opendoor Technologies Inc (NASDAQ: OPEN) saw its shares plummet 6.22% during intraday trading on Thursday, as investors showed signs of nervousness ahead of the company's upcoming earnings report. The significant drop comes as the broader market experienced a selloff, with AI-linked stocks leading the decline across Wall Street.

The real estate technology sector continues to face challenges, and Opendoor's stock movement reflects the overall cautious sentiment in the market. On Thursday, the S&P 500 fell 1%, the Nasdaq 100 dropped 1.8%, and the Dow Jones Industrial Average lost 0.9%, with all major sectors trading lower except energy. This risk-off sentiment has particularly affected high-growth and technology stocks, putting additional pressure on companies like Opendoor.

Opendoor Technologies is scheduled to report its quarterly earnings after the market close today. Market sentiment appears cautious, with options activity suggesting high expectations for volatility following the earnings announcement. According to pre-earnings options data, the implied volatility indicates that the market is anticipating a potential 11.9% move in Opendoor's share price post-earnings. This expectation of a substantial price swing may be contributing to the current selling pressure as investors adjust their positions ahead of the results.