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Key Stats for OPEN Stock
- 1-Month Price Change for OpenDoor stock: +201%
- Current Share Price: $2.08
- 52-Week High: $4.97
- OPEN Stock Price Target: $1.17
What Happened?
Opendoor Technologies (OPEN) stock has surged over 201% in the past month. However, it is also down 40% in the last week after an extraordinary meme stock rally ran out of steam.
The meteoric rise in OPEN stock was driven by retail traders on Reddit’s WallStreetBets forum, the same community behind the infamous GameStop squeeze in 2021.
Trading volumes exploded to 1.9 billion shares on July 21st, more than 1,700% of the three-month average, as the hashtag “HODLTHE($OPEN)DOOR” gained traction online.
The rally in OpenDoor stock was amplified by hedge fund manager Eric Jackson’s bullish calls, claiming it could reach $82 per share. OPEN stock currently trades at $2.08 per share.
What started as mostly under $1 trading this year rocketed to a high of $4.97 on Monday, representing a staggering 400% gain in July alone. The surge appeared to be fueled by a combination of short covering (with 22% of available shares sold short), explosive options activity, and classic meme stock momentum, as retail traders piled in.
See analysts’ growth forecasts and price targets for OpenDoor (It’s free!) >>>
What the Market Is Telling Us About OPEN Stock
The ongoing pullback signals that the speculative fervor surrounding Opendoor may be cooling as traders rotate to other meme targets with high short interest ratios.
The extreme volatility in OPEN stock highlights the disconnect between its fundamental business performance and its recent price action.
Despite the social media hype, Opendoor’s underlying business faces headwinds. It operates in a challenging housing market environment, where high mortgage rates are suppressing demand, and its earnings call revealed cautious guidance amid macroeconomic uncertainty.
While OpenDoor is making progress toward profitability, with positive adjusted EBITDA guidance for Q2, the recent rally appears to be divorced from these fundamentals.
Investors should note that meme stock rallies can be just as spectacular in reverse, and Opendoor’s business model, which involves buying and selling homes, remains sensitive to broader real estate market conditions.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
