Varsha
Opendoor Technologies (OPEN) just delivered one of the year’s wildest stock market plot twists. On Monday, shares soared as much as 75% in midday trading—an explosive move that’s thrust the iBuyer company into the spotlight of meme-stock mania, with a surge powered by retail traders, social media fire, and a bold new bull case.
The Meteoric Rise: By the Numbers
- Monday’s Intraday Surge: Up to 75%.
- Week-over-Week Gain: 188% in the previous week.
- Low-to-High Recovery: From near $0.50 a share less than a month ago, now above $4.
- All-Time High: $39.24 (February 2021).
Despite this eye-popping reversal, OPEN still trades well below its pandemic-era highs—but the mood has shifted dramatically as the stock rockets higher.
What’s Fueling Opendoor’s Run?
1. Retail Investor Frenzy
- Reddit’s r/wallstreetbets: The home of meme stocks is flush with speculative posts and bullish sentiment on Opendoor.
- Trading Volumes: Data from VandaTrack shows retail trading in OPEN has hit multi-year highs, mimicking previous manias seen in GameStop and AMC.
2. Short Squeeze Setup
- Short Interest: Over 25% of OPEN’s float was sold short by late June—leaving room for a classic “short squeeze” as rising prices force short sellers to cover.
- Comparisons: The setup is eerily similar to GME and AMC’s breakout years, where a coordinated retail push squeezed out short sellers.
3. Public Bull Calls
- EMJ Capital’s Eric Jackson—known for his Carvana turnaround thesis—publicly projected in July that Opendoor would report its first-ever positive EBITDA in August.
- He even floated an $82 price target on social media, capturing massive attention and fueling optimism.
- Speculative Bets: Social media momentum has emboldened more traders to pile in, despite no changes to core business fundamentals.
The Company Backdrop: Boom, Bust, and Meme Momentum
- Initial Promise: Opendoor became a public company via SPAC merger in December 2020—offering a tech-driven way to buy and sell homes quickly and easily.
- Profit Struggles: Since going public, it has never posted a profitable quarter—even as the company’s SPAC hype faded.
- Regulatory Headwinds: In May, Opendoor was warned about possible Nasdaq delisting for trading under $1 for over 30 days.
- Legal Clouds: In June, the company settled a class-action lawsuit alleging its pricing algorithm couldn’t adapt to fast-changing housing market conditions—an issue it was accused of not fully disclosing.
Opendoor’s Recent Headlines
| Event | Details |
|---|---|
| Intraday Surge | Shares surged up to 75% in Monday trading |
| Previous Week Gain | Stock jumped 188%—one of the largest moves on Nasdaq |
| Short Interest | Over 25% of float is shorted, putting pressure on sellers as price rises |
| Nasdaq Delisting Threat | Warned in May for prolonged sub-$1 trading |
| Class Action Lawsuit Settlement | Settled claims related to pricing algorithm disclosure |
| Bullish Price Target | Eric Jackson projects $82/share, sees first-ever positive EBITDA in August |
Is Opendoor the Next Meme Stock Legend?
Much like GameStop and AMC, Opendoor’s latest rally appears to be mostly fueled by:
- Social media buzz
- High levels of retail trading activity
- Heavy short interest
- Bold predictions from influential traders
Still, the company has significant questions surrounding its long-term profitability and business model. Its path forward will likely depend on whether it can finally turn a profit, sustain retail investor interest, and manage ongoing legal and regulatory pressures.
FAQ: What Investors Are Asking
That depends on underlying business performance, whether the “meme” crowd sticks around, and if short sellers continue to get squeezed.
Opendoor is an “iBuyer”—using technology to buy and sell homes quickly, without traditional agents.
EMJ Capital’s Eric Jackson believes so, predicting the first-ever positive quarter for OPEN this August.
The company settled a major class-action suit in June 2025, but broader market, regulatory, and algorithm risks remain for OPEN.
Final Thoughts
Opendoor’s story in mid-2025 is a microcosm of retail investor influence and meme-stock volatility. Whether OPEN becomes the next legendary turnaround—or sinks back as enthusiasm fades—may come down to its next earnings report. Is this meme-stock rally a fleeting dream, or a sign that Opendoor is finally opening the door to a true comeback?
