Opendoor Technologies Inc. (OPEN) saw its shares plummet 5.02% in pre-market trading on Monday, following a series of critical assessments from analysts and hedge fund managers. The sharp decline comes after the stock had experienced a remarkable rally of over 1,000% in recent months, raising questions about the sustainability of its business model and valuation.

KBW analyst Ryan Tomasello reiterated a Sell rating on Opendoor Technologies, setting a price target of $1.00. This bearish outlook, combined with growing skepticism from prominent market figures, appears to have triggered a sell-off among investors. Notably, hedge fund manager George Noble criticized the company, calling it "total garbage" and warning that its business model "does not work and has atrocious unit economics."

The iBuying platform, which uses a digital marketplace to flip homes, has faced ongoing concerns about its profitability. Critics point out that Opendoor has consistently reported losses since its founding, despite recent cost-cutting measures and changes in leadership. The company's new CEO, Kaz Nejatian, formerly of Shopify, faces the challenge of turning the business around in a challenging real estate market. As investors reassess the stock's recent surge, many are questioning whether the company's fundamentals justify its current valuation, leading to today's pre-market plunge.