Opendoor Technologies Inc (OPEN) saw its stock plummet 5.02% in pre-market trading on Monday, following a series of negative reports and criticisms from analysts and hedge fund managers. The iBuying platform, which had recently experienced a significant rally, is now facing renewed scrutiny over its business model and long-term viability.

KBW analyst Ryan Tomasello maintained a Sell rating on Opendoor Technologies, with a price target of $1.00, signaling a lack of confidence in the company's current valuation. Adding to the bearish sentiment, hedge fund manager George Noble called Opendoor "total garbage," criticizing its business model and highlighting the company's consistent losses since its founding. Noble warned investors against believing in Opendoor's long-term viability, stating that "the business model does not work and has atrocious unit economics."

The pre-market plunge comes after Opendoor's stock had soared over 1,000% in recent months, driven by speculation and hopes of a turnaround under new management. However, critics argue that the company's cost-cutting measures are unlikely to significantly impact its long-term trajectory. As investors reassess the stock's meteoric rise, concerns about Opendoor's profitability and the sustainability of its business model in the competitive real estate market continue to mount.