What Happened?
Shares of technology real estate company Opendoor (NASDAQ: OPEN) jumped 6.9% in the morning session after buying from retail investors and a high level of short interest, creating volatility.
The real estate platform has become a favorite among individual traders, who recently poured approximately $97 million into the stock, according to a JP Morgan report. This intense retail interest comes as institutional investors have largely stayed on the sidelines. The stock also has significant short interest, with nearly a quarter of its publicly available shares being bet against by traders. This dynamic can lead to a "short squeeze," where heavy buying pressure forces short-sellers to buy back shares, further driving up the price. While the stock is up nearly 180% year-to-date amid optimism about a stabilizing housing market, conflicting signals exist.
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 91 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 11.3% on the news that 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.
Opendoor is up 239% since the beginning of the year, and at $5.39 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 $449.53.
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.
