Why Opendoor Technologies Stock Is Plummeting Today

Source Motley_fool

Key Points

  • Opendoor Technologies stock has seen incredible gains recently, but the rally is losing some steam today.

  • The company's valuation surge was driven by backing from a hedge fund manager and meme-stock momentum, but investors are taking profits today.

  • Opendoor's meme-driven rally could resume, but the stock looks incredibly risky right now.

  • 10 stocks we like better than Opendoor Technologies ›

Opendoor Technologies (NASDAQ: OPEN) stock is getting hit with a big pullback. The company's share price was down 20.1% as of 1:15 p.m. ET. At the same point in the day's trading, the S&P 500 index was up 0.4%, and the Nasdaq Composite index was up 0.1%.

Opendoor Technologies has recently gained favor as a meme stock and seen incredible valuation gains, but the company's share price is pulling back today as investors take profits on recent gains. Despite big sell-offs in today's session, the stock is still up 330% over the last month.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

A chart line and bar graph moving down.

Image source: Getty Images.

Opendoor stock sinks as meme rally loses steam

Opendoor became a hot meme-stock play after hedge fund manager Eric Jackson began championing the beaten-down stock as a potentially explosive turnaround play. While the company's share price has seen an incredible rally recently, it's still down roughly 81% over the last year of trading.

Highly speculative meme-stock trades have recently become popular again, and some investors have been betting that the potential for lower interest rates and other market catalysts will power strong rallies for some companies with beaten-down valuations. Investors in meme stocks have scored some big wins with Opendoor and other companies recently, but today's big pullback for the company's share price highlights the potential for big downside volatility at this stage in the game.

What's next for Opendoor Technologies?

Opendoor Technologies stock will likely continue to be incredibly volatile in the near term. While nothing substantial has changed about the company's fundamentals since its massive meme-stock rally, investors will get a detailed look at the company's business with the publication of its second-quarter results after the market closes on Aug. 5. The company could treat its big stock rally as an opportunity to sell shares and strengthen its balance sheet, but the dilutive impact could wind up dashing the hopes of investors hoping to score big short-term gains.

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 $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,813!*

Now, it’s worth noting Stock Advisor’s total average return is 1,034% — a market-crushing outperformance compared to 180% 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 July 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Ethereum Price Momentum Explodes—Is the Path to $4K Wide Open?Ethereum price started a fresh increase above the $3,750 zone. ETH is now showing bullish signs and might continue to rise toward the $3,950 zone. Ethereum started a fresh increase above the $3,750
Author  NewsBTC
7 Month 22 Day Tue
Ethereum price started a fresh increase above the $3,750 zone. ETH is now showing bullish signs and might continue to rise toward the $3,950 zone. Ethereum started a fresh increase above the $3,750
placeholder
Oil Prices Rise on Sharp U.S. Inventory Drop; Trade Deals Take Center StageOil prices edged higher during Thursday’s Asian trading session, supported by data showing a sharp drop in U.S. crude inventories, as investors cautiously awaited developments on trade agreements ahead of Donald Trump’s looming deadline.
Author  Mitrade
17 hours ago
Oil prices edged higher during Thursday’s Asian trading session, supported by data showing a sharp drop in U.S. crude inventories, as investors cautiously awaited developments on trade agreements ahead of Donald Trump’s looming deadline.
placeholder
Dollar Inches Higher as Traders Await ECB Decision and U.S. Data ReleasesThe U.S. dollar edged higher Thursday but remains at low levels, while the euro slipped ahead of the latest policy-setting meeting from the European Central Bank.
Author  Mitrade
16 hours ago
The U.S. dollar edged higher Thursday but remains at low levels, while the euro slipped ahead of the latest policy-setting meeting from the European Central Bank.
placeholder
Tesla Shares Slide as Musk Warns of Tough Quarters Ahead Amid Weaker DemandTesla (NASDAQ: TSLA) shares fell more than 5% in U.S. premarket trading on Thursday, after CEO Elon Musk cautioned investors about a potentially challenging period for the electric vehicle giant. The warning comes as the company struggles with softer consumer demand and the looming expiration of key federal tax incentives for EV buyers.
Author  Mitrade
15 hours ago
Tesla (NASDAQ: TSLA) shares fell more than 5% in U.S. premarket trading on Thursday, after CEO Elon Musk cautioned investors about a potentially challenging period for the electric vehicle giant. The warning comes as the company struggles with softer consumer demand and the looming expiration of key federal tax incentives for EV buyers.
goTop
quote