Opendoor stock (OPEN) continued its meteoric rise on Monday, jumping over 75% by midday trading. Following an astounding 188% gain last week, Opendoor Technologies has captured the spotlight among retail investors and meme-stock enthusiasts.
The home iBuying platform, which once traded below $1, has now surged past $3.90 in just a few days. While still far from its all-time high of $39.24, this rapid climb is turning heads on Wall Street and social media.
What’s Driving the Opendoor Stock Rally?
Several key factors are fueling the surge in Opendoor stock:
1. Retail Investor Mania
Similar to GameStop and AMC during their 2021 rallies, Opendoor has become a favorite among retail traders, especially on Reddit’s r/WallStreetBets. The increased social media chatter has translated into massive buying pressure.
2. Bullish Prediction from EMJ Capital
Eric Jackson, founder of EMJ Capital and known for predicting the Carvana comeback, recently made a bullish case for Opendoor. He forecasts that the company will report its first positive EBITDA quarter in August, with a long-term price target of $82 per share.
Jackson’s viral social media thread sparked renewed interest in Opendoor Technologies, further driving momentum in Opendoor stock.
3. Short Squeeze Potential
As of June, over 25% of Opendoor’s public float was sold short. Rapid price gains likely forced short sellers to cover their positions, accelerating the rally—a scenario reminiscent of past meme-stock surges.
Opendoor’s Business Model and Challenges
Opendoor went public via a SPAC in December 2020, offering instant home offers using proprietary algorithms and a digital-first approach.
However, the company has yet to report a profitable quarter. In May, Nasdaq issued a warning after Opendoor traded under $1 for over 30 consecutive days, raising delisting concerns.
In June, Opendoor settled a class-action lawsuit claiming weaknesses in its pricing algorithm, particularly during volatile real estate conditions.
What’s Next for Opendoor Stock?
Investors are watching Opendoor’s August quarterly results closely. Positive EBITDA could give Opendoor stock further momentum and attract institutional interest.
However, risks remain. Weak earnings or fading retail enthusiasm could quickly reverse gains.
Should You Buy Opendoor Stock Now?
Your decision depends on your investment approach:
- Long-term investors: Opendoor still needs to prove sustainable profitability.
- Momentum traders: Short-term upside may exist due to retail speculation and short-squeeze potential.
Remember, volatility cuts both ways, and meme-stock rallies can be unpredictable.
Final Thoughts
The surge in Opendoor stock highlights the perfect storm of retail investor enthusiasm, short interest, and bold predictions. Whether this rally marks a genuine turnaround for Opendoor Technologies or a temporary spike, the company has once again captured the market’s attention.
Investors should monitor upcoming earnings, retail sentiment, and market conditions before making any decisions.
