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Opendoor stock gains 42% in wild day after doubling early Monday as volatility triggers trading halt
Opendoor stock gains 42% in wild day after doubling early Monday as volatility triggers trading halt

Yahoo

time21-07-2025

  • Business
  • Yahoo

Opendoor stock gains 42% in wild day after doubling early Monday as volatility triggers trading halt

Opendoor Technologies (OPEN) stock continued its wild ride on Monday, rising 42% after a trading day that saw shares more than double before being halted for volatility in the final hour of the session. At its peak on Monday, Opendoor's intraday rally reached as much as 115% before triggering a volatility-related trading halt in the stock near 3:00 p.m. ET. The stock was halted for 10 minutes Monday afternoon after the stock crossed the Nasdaq's volatility limit, which is triggered when a stock's share price moves too far and too quickly, depending on the per-share value of the stock. The long-beleaguered iBuyer platform saw its share price gain 188% last week, bringing the stock from just above $0.50 less than a month ago to above $4.80 at Monday's session highs. Shares still remain far below their all-time high of $39.24 reached in February 2021. Powering the stock, in part, has been a public bull case from Carvana (CVNA) turnaround spotter EMJ Capital and a ream of speculative bets posted to the subreddit wallstreetbets, a haven for meme stocks, have both added significant fuel to the fire. Retail trading activity in the stock has surged in recent weeks, according to data from VandaTrack. Read more about Opendoor's stock moves and today's market action. Opendoor uses iBuyer real estate technology to buy homes from owners for cash, make light repairs, then flip them back onto the open market to hopefully resell at a profit. Since going public through a SPAC transaction in December 2020, Opendoor has yet to post a profitable quarter. But EMJ Capital principal Eric Jackson — who first gained notoriety for being an early believer in turnaround potential at Carvana — predicted in an X thread laying out his bull case on the stock that it would report its first quarter of positive EBITDA in August and that he sees a price target of $82. The company was served a warning that it faced potential delisting from the Nasdaq in May after trading under $1 for more than 30 days. In June, it settled a class-action lawsuit alleging that the company did not properly disclose its price algorithm's inability to adapt to changes in the housing market. As with meme-stock predecessors GameStop (GME) and AMC (AMC) during their own retail-frenzied runs throughout 2021, short bets on Opendoor had hit a record level, accounting for more than 25% of the company's float by the end of June. Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at Sign in to access your portfolio

Opendoor stock records 180% weekly gain as retail frenzy cements meme status
Opendoor stock records 180% weekly gain as retail frenzy cements meme status

Yahoo

time21-07-2025

  • Business
  • Yahoo

Opendoor stock records 180% weekly gain as retail frenzy cements meme status

Opendoor Technologies' (OPEN) stock delivered a 188% gain on the week after a trading day that saw the iBuyer penny stock rocket upward another 36%. Following a bull thesis for an Opendoor turnaround posted to X on July 14 by EMJ Capital principal and Carvana (CVNA) spotter Eric Jackson, the stock has firmly entered retail meme stock status. Retail trading activity in Opendoor stock has increased 140% over the past 10 days compared to the preceding month, according to retail investor data provider VandaTrack. After reaching a high of $39.24 in February 2021, shares of Opendoor had fallen to under $1 each. The latest retail rally, fueled by Jackson's thesis and speculative posts on the meme-stock Reddit forum r/WallStreetBets, has begun to push the company toward the $5 line that would lift it out of penny stock status. On Friday, the stock closed at $2.25 per share. The question for Opendoor leadership will be what it can do to maintain the momentum and potentially reach Jackson's price target of $82 per share. Opendoor uses iBuyer real estate technology to buy homes from owners for cash, make light repairs, then flip them back onto the open market to hopefully resell at a profit. Jackson told Yahoo Finance that while he isn't currently making an overt activist play on the company, he has heard several ideas that, "if you waved a magic wand and suddenly [the ideas] were announced this afternoon, [I] think would cause an eruption upwards in the shares." Read more about Opendoor's stock moves and today's market action. Several factors contributed to Opendoor's stock price falling below a dollar. The combination of a declining housing market and rising interest rates put pressure on the company's bottom line at the macro level, and its heavy use of borrowing to acquire and quickly flip homes has saddled the company with debt. As Jackson noted in his X thread, Opendoor has never notched a quarter of positive EBITDA. After spending more than 30 days trading below $1, Opendoor disclosed to investors in May that it had received warning of a possible delisting from the Nasdaq. And in June, the company agreed to pay $39 million to settle a class-action lawsuit brought in 2022 by investors who claimed the company failed to disclose that its pricing algorithms are not equipped to adapt to shifting conditions in the housing market. But investors see a tailwind. Jackson noted in his X thread that he expects Opendoor to report its first quarter of positive EBITDA in August and complimented the company's new experimentation with partnering with real estate brokers instead of constantly competing with them. With housing market giants Zillow (Z) and Redfin having exited the iBuyer game as of 2021 and 2022, respectively, the company faces little competition. For now, retail investors are piling into a bet that Opendoor could be the next Carvana.

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