What Happened?
Shares of technology real estate company Opendoor (NASDAQ:OPEN) jumped 80.1% in the afternoon session after a social media post from an influential investor predicting a strong turnaround. The stock remained a favorite among retail traders, with mentions soaring on platforms like Reddit's WallStreetBets and X, turning it into a so-called "meme stock." Investor Eric Jackson, known for a successful early call on Carvana, fueled the rally by suggesting a significant upside for Opendoor, citing cost reductions and improving margins. This enthusiasm led to a surge in trading volume and a classic "short squeeze," where investors betting against the stock are forced to buy shares to cover their positions, further driving up the price.
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What Is The Market Telling Us
Opendoor’s shares are extremely volatile and have had 82 moves greater than 5% over the last year. But moves this big are rare even for Opendoor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 29.5% as the stock continued its upward momentum from the previous day's session, which was sparked by news of activist investor interest.
Opendoor is up 153% since the beginning of the year, and at $4.01 per share, has set a new 52-week high. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $334.73.
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