Opendoor Technologies Inc. (OPEN) saw its stock plummet 5.22% in pre-market trading on Monday, as investors reacted to a series of negative reports and criticisms from analysts and hedge fund managers. The sharp decline comes after the iBuying platform had experienced a remarkable rally of over 1,000% in recent months, raising concerns about the sustainability of its business model and current valuation.

The sell-off was triggered by several factors, including a reiterated Sell rating from KBW analyst Ryan Tomasello, who maintained a price target of $1.00 for the stock. Adding fuel to the bearish sentiment, hedge fund manager George Noble publicly criticized Opendoor, calling it "total garbage" and warning that its business model "does not work and has atrocious unit economics." Noble's comments highlighted the company's consistent losses since its founding and questioned the effectiveness of recent cost-cutting measures.

As investors reassess Opendoor's meteoric rise, concerns about the company's profitability and long-term viability in the competitive real estate market continue to mount. The pre-market plunge suggests that the market is now questioning whether Opendoor's fundamentals justify its recent valuation surge. With the company facing ongoing scrutiny, all eyes will be on new CEO Kaz Nejatian, formerly of Shopify, as he attempts to navigate these challenges and turn the business around in a difficult real estate environment.