1 Reason Why Opendoor Stock Is Yesterday's News
Key Points
Opendoor is an online platform that allows people to sell their homes quickly, bypassing much of the traditional homebuying process.
The stock soared after retail investors saw that it had high short interest. Hedge fund manager Eric Jackson also said he believes the stock can reach $82 per share.
However, I think Opendoor's moment in the sun may be at an end.
- 10 stocks we like better than Opendoor Technologies ›
Real estate stock Opendoor Technologies (NASDAQ: OPEN) caught some meme magic earlier this year when retail investors on WallStreetBets, the sub-Reddit that played a large role in driving GameStop to astronomical levels in 2021, noticed that short interest had surged past 20%. This made the stock a prime candidate for a short squeeze.
Opendoor's stock went from less than $0.60 per share in June to $7.25 (as of Dec. 2), and at one point earlier this year had reached roughly $10.50 per share. Hedge fund manager Eric Jackson played a significant role in the stock's surge, stating that it has the potential to reach $82 per share.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Opendoor is an online platform that allows people to quickly sell their homes to the company, primarily through a digital process that eliminates many of the middlemen involved in the traditional homebuying process. The company then looks to resell the homes at a profit.
While Opendoor has been on an incredible run, here's one reason the stock is yesterday's news.
The push has come and gone
One reason I believe Opendoor is yesterday's news is that the big meme stock push has come and gone, and now there is less buzz in general about the company, which is critical for meme stocks. There are also more meme stocks than when the craze started in 2021, and there always seems to be a new one on the horizon. For instance, Beyond Meat is another stock that appears to have captured the meme spotlight, with its stock recently up more than 51%.
I also believe that many of Opendoor's major catalysts have already occurred, so the company will need to execute operationally to continue driving the stock higher.
For instance, the company named Kaz Nejatian, a former Shopify executive, as the new CEO in September and also appointed Opendoor's Co-Founder, Keith Rabois, as chairman of the company's board of directors. This news sent the stock to all-time highs.
Perhaps new management can turn the company around. Nejatian recently unveiled a new strategic plan that includes scaling home acquisitions and capturing more market share, enhancing unit economics and resale velocity, and building operational leverage. More interest rate cuts that stimulate homebuying and selling activity could also help, but right now the company is still losing money and saw revenue decline significantly year over year.
Ultimately, Opendoor is no longer as prevalent in the broader business media, and other meme stocks are likely to pop up, which is why I think the company is yesterday's news.
Should you invest $1,000 in Opendoor Technologies right now?
Before you buy stock in Opendoor Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $589,717!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,111,405!*
Now, it’s worth noting Stock Advisor’s total average return is 1,018% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat and Shopify. The Motley Fool recommends Reddit. The Motley Fool has a disclosure policy.
Recommended Articles
