🚀 Opendoor Technologies Stock Skyrockets: Here’s Why Traders Are FOMOing In

Wall Street's latest love affair? Opendoor Technologies just ripped through resistance like a hot knife through butter. Here's the breakdown—no fluff, just alpha.

The Catalyst No One Saw Coming

Rumors swirl that institutional whales are loading up on $OPEN shares after a stealthy pivot into blockchain-based property transactions. Because nothing pumps a stock like slapping 'decentralized' in front of anything these days.

Short Squeeze Fueling the Fire

Short interest cratered 18% in pre-market as algos front-ran the gamma ramp. Classic case of hedge funds getting caught with their spreadsheets down.

What The Charts Won't Tell You

Technical analysts are drawing lines while fundamentalists cry 'overvalued'—meanwhile, retail traders are YOLOing weeklies like it's 2021 all over again. Some things never change.

Will it last? Who knows. But for now, Opendoor's proving that in today's market, even real estate plays can moon if you sprinkle enough tech buzzwords on them.

Activist investor continues to fuel Opendoor's stock rally

Last week's earnings release showed weak revenue growth and continued net losses, though that loss is shrinking. The company also reported its first positive quarter of earnings before interest, taxes, depreciation, and amortization (EBITDA) since 2022. CEO Carrie Wheeler addressed concerns over the weak earnings, saying that the housing market continued to deteriorate.

Leading up to the earnings release and immediately following it, calls have intensified for the CEO's removal. Co-founder of the company Keith Rabios called Wheeler "utterly incompetent," and EMJ Capital's Eric Jackson, the investor largely responsible for kick-starting Opendoor's meme status, has also ramped up calls for her removal.

Image source: Getty Images

Jackson and the large retail investor base believe that OpenDoor is sitting on a data Gold mine that could turn it into a powerhouse if the company were to pivot to an artificial intelligence (AI)-focused platform and make use of the data. In the last few days, Opendoor's management, including Wheeler, has started to more directly address investor concerns, leading to a renewed hope that the company can turn things around.

Opendoor is still a speculative play

While the theory fueling its meme-stock rally has its merits, it's still just that -- a theory. Given Opendoor's capital-intensive nature, negative free cash flow, significant debt, lack of profit, and worsening housing market, I WOULD avoid this stock.