Opendoor Technologies Stock Soars: Here’s Why It’s Defying Gravity in 2025

Another day, another meme stock mooning—but this time it's iBuying darling Opendoor making Wall Street sweat.

The rocket fuel: No official numbers yet (classic), but whispers of a partnership with a crypto-heavy proptech player sent traders into FOMO overdrive. Probably another 'strategic synergy' that'll be forgotten by earnings season.

Market mechanics at work: Shorts got squeezed harder than a Millennial's avocado budget. Volume spiked 300% above average—because nothing says 'sound investment' like herd mentality chasing a ticker.

The cynical take: Let's be real—this is the same company that bled cash during the housing boom. But hey, when the Fed's printing press is on standby, even zombie stocks get their day in the sun.

Opendoor's CEO is out

CEO Carrie Wheeler is stepping down after facing increasing pressure to do so from vocal activist investors and a wide swath of the company's retail investors, who have been driving the stock's success in recent months. EMJ Capital's Eric Jackson, the investor largely responsible for igniting the original meme rally, was very vocal about his displeasure with Wheeler's handling of the company. Opendoor's co-founder, Keith Rabois, echoed Jackson's calls and called Wheeler "utterly incompetent."

The retail rally is centered around the idea that Opendoor could transform its business with AI, using its extensive proprietary data. In the company's announcement, AI was heavily featured, saying it was "well positioned to focus on its considerable data and unique assets in today's high-tech AI world."

Image source: Getty Images

Opendoor is still a speculative play

Opendoor operates in a very capital-intensive space, has negative free cash flow, significant debt, and is in the red. I am suspicious of its long-term value, especially if the housing market worsens, which is entirely possible.