Opendoor Technologies stock surged 42% on Monday, spotlighting the powerful momentum of meme stock trading and iBuyer tech resurgence. The sudden rally caught the attention of retail investors, analysts, and the Nasdaq alike.
Shares Double, Then Dip as Volatility Halts Trading
At its peak, Opendoor’s stock skyrocketed by 115% during intraday trading before triggering a Nasdaq volatility halt around 3:00 p.m. ET. This type of halt occurs when a stock’s price shifts too fast in too short a time, especially with low per-share values. After a 10-minute pause, the stock resumed trading and closed the day up 42%.
A Wild Week: From Pennies to Nearly $5
Opendoor’s rollercoaster didn’t begin on Monday. Over the past week, its stock price jumped 188%, rising from just above $0.50 to a high of $4.80. While this is far below its February 2021 peak of $39.24, the jump has reignited investor interest in the iBuyer platform.
Reddit Hype and EMJ Capital Fuel the Fire
The rally hasn’t come from traditional earnings strength. Instead, it’s largely driven by speculative energy on Reddit’s WallStreetBets and a bullish call from EMJ Capital. Eric Jackson, known for spotting Carvana’s turnaround, laid out a confident case for Opendoor on X (formerly Twitter). He believes the company will report its first quarter of positive EBITDA in August and sees a lofty price target of $82.
Retail Traders Reignite the Meme Stock Playbook
Retail traders have piled into Opendoor in recent weeks. Data from VandaTrack shows a steep rise in activity, mirroring 2021’s retail rush seen with GameStop and AMC. Short interest in Opendoor also spiked—more than 25% of its float was shorted by June’s end, setting the stage for a short squeeze.
Tech-Driven, But Still Unprofitable
Despite the hype, Opendoor has never posted a profitable quarter since going public via a SPAC in December 2020. The company’s business model revolves around its iBuyer platform—buying homes for cash, lightly renovating them, and flipping them for a profit.
In May, Opendoor received a delisting warning from Nasdaq for trading under $1 for over 30 days. It also recently settled a class-action lawsuit over its pricing algorithm’s failure to adjust to market shifts.
Looking Ahead: Volatility or Victory?
With speculation, Reddit buzz, and bold price targets fueling its rally, Opendoor is back in the spotlight. But whether this surge marks a turnaround or just another meme-driven spike remains to be seen.
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