Today, stocks of OpenDoor Technologies (OPEN, +36.06%) are climbing once more, fueled by the momentum behind the meme-stock trend that has propelled this online home-flipping company upwards in recent weeks. Despite a lack of company-specific news regarding the stock, this trend appears to be gaining traction today. The idea that OpenDoor could follow in the footsteps of Carvana is garnering attention on social media platforms like X and Reddit, and trading activity for the stock has skyrocketed.
As of 1:59 p.m. ET, the stock was up 35.1%.
Opendoor gets the meme treatment
In the past few weeks, Opendoor’s performance has been exceptional, with its stock value almost trebling.
Over time, Opendoor has shown significant ups and downs, even dipping into the penny stock territory with shares priced below $1. Given these past fluctuations, it’s reasonable to expect some variations in the current share price. However, it seems that a growing bandwagon of individual investors is fueling an upward trend in the stock price.
It appears that a post on Reddit’s WallStreetBets in May may have sparked the recent surge in Opendoor’s stock price. In a post labeled “Opendoor is the next Carvana,” which has garnered over 1,000 comments, one user revealed they had invested $155,000 in Opendoor and presented a case for its potential recovery by suggesting changes to their business model and the short-term influence of hedge funds closing their short positions at the end of the second quarter.
As a stock market enthusiast, I’ve noticed an interesting dynamic today! With around 24% of the float being shorted as of mid-June, there could have been a short squeeze at play, contributing to the stock’s impressive gains. Moreover, the trading volume today is remarkably high, surpassing 219 million shares by 2:30 p.m. ET, which is more than any session in the past year! This is significantly higher than the 90-day average of 84.8 million shares traded daily.
Where does Opendoor go from here?
Notably, the recent gains have been unrelated to anything going on with the business.
Yesterday, Opendoor’s stocks increased despite the June Consumer Price Index (CPI) report reducing the chances of the Federal Reserve lowering interest rates. Currently, it appears that the stock has detached itself from the core aspects of its business, which is typically a negative indication for the long term outlook.
Although the surge from trend and popular stock phenomena might elevate Opendoor, it’s more advantageous for long-term investors to abstain from involvement in this case.
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2025-07-16 22:13