What Happened?
Shares of technology real estate company Opendoor (NASDAQ: OPEN) jumped 11.3% in the afternoon session after heightened interest from retail investors, fueled by social media activity and its status as a "meme stock."
The online real estate company has become a favorite among retail traders, partly due to its high short interest, where 24.64% of the available shares are sold short. This makes it a target for traders betting against short-sellers. The momentum was amplified after hedge fund manager Eric Jackson, who previously called the stock a potential “100-bagger,” posted on X that he might meet with Opendoor's management this week. This sparked increased buying interest.
Adding to the excitement, the company's new interim president, Shrisha Radhakrishna, recently purchased 30,000 shares, a move that followed the departure of former CEO Carrie Wheeler and was seen by the market as a vote of confidence in the company's new direction.
Is now the time to buy Opendoor? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Opendoor’s shares are extremely volatile and have had 90 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 11 days ago when the stock gained 29.2% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Opendoor is up 223% since the beginning of the year, and at $5.14 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 $462.20.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
