Opendoor Technologies Surges 500% in Meme Stock Craze

Speculative Interest Soars

Shares of Opendoor Technologies (OPEN) have experienced a remarkable surge of over 170% in just five trading days, marking the company as the latest meme stock sensation among traders on Reddit’s WallStreetBets. The online real estate marketplace has garnered significant speculative interest and trading volumes over the past month, catching the attention of the WallStreetBets community known for highlighting meme stocks. Starting as a penny stock, Opendoor shares have skyrocketed by more than 500% in the last 30 days, with the current trading price standing at $3.11.

WallStreetBets Influence

The surge in Opendoor's popularity is reflected in the substantial spike in daily trading volumes, which have surged to more than five times the long-term average based on data from Yahoo Finance. Notably, on Monday alone, approximately 1.9 billion Opendoor shares were traded, as reported by CNBC citing FactSet data. The WallStreetBets subreddit, boasting over 19 million members, is renowned for advocating high-risk trading strategies, often targeting heavily shorted stocks with strong community support, leading to potential short squeezes.

Resurgence of Meme Stock Mania

Despite the frenzy surrounding meme stocks during the COVID-19 pandemic, fueled by unprecedented stimulus payments that facilitated a surge in retail trading, Opendoor's financials paint a picture of stability compared to other meme stock favorites championed by WallStreetBets. In the first quarter, the company reported $1.2 billion in revenue, reflecting a 2% decline year-over-year but a 6% increase from the previous quarter. Notably, Opendoor also generated $99 million in gross profit. This resurgence in meme stock mania is occurring amid a historic recovery in the US stock market and the cryptocurrency market's surpassing of a $4 trillion market cap for the first time, driven by renewed investor confidence after a volatile start to the year.