OPENDOOR

THE OPENDOOR EXPLOSION

Remember 2021? GameStop, AMC, WallStreetBets, Reddit... a whole “revolution” of retail investors that shook the markets and put meme stocks on the investing map. Fast forward to 2025, and history seems to be repeating itself—this time with Opendoor Technologies at the center.

Opendoor is an online real estate platform that aims to bring the property market into the digital age. But here, we’re not so much interested in the business model as in what happened to its stock.

In 2024, its share price had dropped below $1, and many had written it off. Until suddenly, Eric Jackson—a well-known hedge fund manager and founder of EMJ Capital—posted on X that he sees the stock becoming a “100-bagger.” In other words, a 100x return.

That tweet ignited massive interest, especially among retail investors, and WallStreetBets quickly caught fire. Within days, the stock soared 492% (!), from under $1 to nearly $5, with daily trading volume surpassing 1.9 billion shares—more than 1,700% of its 3-month average.

As you can imagine, hashtags like #HODLTHE($OPEN)DOOR began to pop up, and memes and gifs featuring Elon Musk, Trump, and rocket ships flooded the internet. Investors smelled a short squeeze, as more than 22% of Opendoor’s available shares were being shorted.

What does that mean? It meant there was a huge chance for a violent rally, as short sellers were forced to buy back their shares to cover their losses. That only pushed the price even higher. Meanwhile, options activity tripled, according to Bespoke Investment Group, which dubbed Opendoor the “poster-child” of the other day options frenzy.
After yet another explosive start to the day (+24%), the stock closed down more than 9%. And despite the overall 400% rise in July, uncertainty has returned.

And they say that crypto are for gamblers......

Posted Using INLEO