Opendoor Technologies (OPEN) stock has been on a remarkable upward trajectory, with shares surging by as much as 32% in early trading on Monday morning. This surge is part of a meme stock-style rally that has been captivating investors. The iBroker platform, which has been struggling for some time, saw its share price jump an impressive 188% last week. This increase has brought the stock from just above $0.50 a month ago to over $2.75 now. Despite this significant gain, the shares are still far below their all-time high of $39.24 reached in February 2021.
One of the driving forces behind the surge in Opendoor’s stock price has been a bullish case made by EMJ Capital, a firm known for spotting turnaround opportunities, particularly in companies like Carvana (CVNA). Additionally, speculative bets posted on the subreddit wallstreetbets have added fuel to the fire. Retail trading activity in the stock has also seen a notable increase in recent weeks, according to data from VandaTrack.
Although Opendoor went public through a SPAC transaction in December 2020, the company has yet to post a profitable quarter. However, EMJ Capital principal Eric Jackson, who gained recognition for his early support of Carvana, has predicted that Opendoor will report its first quarter of positive EBITDA in August. He also sees a price target of $82 for the stock.
In May, Opendoor received a warning from the Nasdaq that it faced potential delisting due to trading below $1 for more than 30 days. In June, the company settled a class-action lawsuit that alleged it did not properly disclose its price algorithm’s inability to adapt to changes in the housing market. Similar to other meme stocks like GameStop (GME) and AMC (AMC), short bets on Opendoor reached a record level, accounting for more than 25% of the company’s float by the end of June.
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