Stocks related to memes are resurfacing, with Opendoor showing a significant increase - however, analysts believe these surges will diminish over time.
In the current market landscape, Opendoor Technologies, a peer-to-peer residential real estate firm, has found itself at the centre of attention among Reddit's vigilante investors, alongside Krispy Kreme, GoPro, and Kohl's [1]. This newfound focus has propelled Opendoor's shares, with a surge of over 300% in just days, and spikes as high as 500% in a month [2].
The catalyst behind this meme stock mania is a wave of retail trader enthusiasm and social-media hype, reminiscent of the phenomenon that brought meme stock trading to international attention in 2021 [3]. The surge in Opendoor's stock price is not primarily driven by fundamental business improvements, but rather by short squeeze dynamics, FOMO (fear of missing out) chasing short squeezes, and a supportive macroeconomic backdrop encouraging risk-taking [1][2][3].
Short sellers have been forced to cover their positions, pushing prices higher [2]. Retail investor optimism is part of a broader return of meme stock activity in 2025, alongside a recovering US stock market and cryptocurrency market rally fueled by easing inflation fears and expectations of interest rate cuts later in the year [3]. Active discussion on Reddit and widespread use of short-term options have amplified speculative bets on Opendoor, similar to past meme stock behaviors [4].
However, unlike the 2021 meme-stock frenzy, the Opendoor rally lacks the cushion of stimulus checks and zero rates [3]. Lale Akoner, global market analyst at eToro, warns that the air may come out of the Opendoor rally as liquidity normalizes and macro risks return to focus [5]. The backdrop for the Opendoor rally today includes tighter financial conditions and unresolved trade volatility [5].
It's important to note that Opendoor Technologies had been shorted by many large investors due to concerns about its fundamentals [6]. Last year saw a revival of retail bets on Gamestop, albeit at less intense trading volumes than three years earlier [7].
The rally of Opendoor Technologies shares has been highly volatile, with the shares almost halving from Monday's peak of $4.79 [8]. As the market continues to evolve, it remains to be seen how the meme stock status of Opendoor Technologies will unfold.
References:
- CNN Business
- The Wall Street Journal
- Bloomberg
- MarketWatch
- Business Insider
- Yahoo Finance
- CNBC
- Reuters
- Investors are showing increased interest in technology and finance sectors, with Opendoor Technologies seeing a surge of over 300% in its stocks due to meme stock mania on platforms like Reddit.
- In the midst of the current market landscape, stocks like Krispy Kreme, GoPro, Kohl's, and now Opendoor Technologies have been boosted by short squeeze dynamics, FOMO, and a supportive macroeconomic environment.
- As the meme stock arena recovers in 2025, with an improving US stock market and cryptocurrency rally, the finance and entertainment worlds may again see the influence of retail traders and social media hype, much like what occurred with companies like Gamestop in the past.
