According to the Zhitong Finance APP, in 2020, Opendoor Technologies Inc. (OPEN.US), which went public with the support of &#34;SPAC King&#34; Chamath Palihapitiya, was a typical representative of the SPAC bubble. Now, after a surge driven by retail investors (which cooled down this Tuesday), this technology-driven real estate trading platform is seen as a symbol of the new wave of meme stocks.
It is important to clarify that there has been no significant positive change in the real estate market for Opendoor's core business (the &#34;instant home buying&#34; iBuying model). Current mortgage rates and home prices remain high, and both buyers and sellers are in a wait-and-see mode amid ongoing affordability challenges.
Not long ago, the company's stock price had long been below $1, facing delisting risks.
However, since hitting a low of 51 cents in June 25, 2025, despite the sluggish housing market, the power of retail investors gathered on social media has driven its stock price up over 460%. On Tuesday, the stock rose as much as 24% during the trading session, ultimately closing at $2.88, down more than 10% from the previous day.
Market observers were surprised by this sudden surge, as many of its characteristics are reminiscent of the spikes seen in GameStop (GME.US) and AMC (AMC.US) in 2021. Eric Jackson, founder of Toronto hedge fund EMJ Capital, began promoting the stock online earlier this month, becoming one of the catalysts for this round of market activity.
Business Model Analysis
As of the end of March, Opendoor held over 7,000 residential properties, with an inventory value of approximately $2.4 billion. By the end of last year, its business covered 50 markets, including hot areas in the sunbelt like Phoenix and Atlanta.
Founded in 2014, the company targeted a core pain point in the U.S. real estate market: most homebuyers need to sell their existing properties to purchase new ones, creating a chain transaction dilemma. Its solution is to provide quick cash offers through algorithms, helping sellers break free from the transaction chain. After simple renovations, the company lists the homes for sale, profiting by charging service fees to sellers and earning the price difference.
During the pandemic in 2020, low interest rates and soaring home prices drove its stock price to a historic closing high of $35.88 in February 2021. This windfall attracted established players like Zillow (Z.US) and Redfin to follow suit, while peer Offerpad Solutions Inc. (OPAD.US) also went public through a SPAC merger.
However, industry risks soon became apparent. At the end of 2021, Zillow was forced to stop losses due to misjudging the pace of home price increases, leading to high-priced acquisitions and ultimately shutting down its iBuying business. This painful lesson foreshadowed the challenges facing the entire tech-driven real estate sector.
With the Federal Reserve raising interest rates in 2022, falling home prices forced iBuyers to sell at a loss. Reports at the time indicated that Opendoor experienced losses in 42% of its transactions in August. Subsequently, the company adopted a more conservative bidding strategy, resulting in a sharp decline in acquisition volume and revenue—only acquiring about 3,600 homes in the first quarter of this year, a significant drop from the peak of 15,000 homes in the third quarter of 2021
Recent Trading Dynamics
With the S&amp;P 500 index reaching new highs, Meme stocks have become active again. Kohl's (KSS.US) saw its stock price double on Tuesday driven by retail investors, QuantumScape (QS.US) has risen over 200% in the past month, and Bit Mining Ltd. (BTCM.US) increased by 82% during the same period.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250723/1753227500602785.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250723/1753227500602785.png"/>
Opendoor also benefited from this wave, with a surge in trading volume leading to a spike in stock price. On Tuesday, approximately 1 billion shares were traded, exceeding 780% of the three-month average volume, far surpassing NVIDIA's (NVDA.US) trading volume of 184 million shares on the same day.
Historical experience shows that Meme stocks like GameStop have previously financed through &#34;At-the-Market&#34; (ATM) stock issuance plans during retail investor frenzy periods. Regulatory filings indicate that Opendoor can issue up to $200 million in stock through ATM. The company's representatives did not respond to requests for comment.
Regarding the future market direction, some observers question whether traders truly understand the company or are driven by &#34;fear of missing out&#34; (FOMO). Max Gokhm, Deputy Chief Investment Officer at Franklin Templeton Investment Solutions, pointed out: &#34;Investing in Meme stocks is more like a herd behavior following social media influencers, essentially akin to buying roller coaster lottery tickets.&#34;

OPEN

Opendoor Technologies Inc.'s stock price surged 460% driven by retail investors, becoming a representative of the new wave of meme stocks. Despite the lack of significant positive developments in the real estate market, the company's stock price rebounded after hitting a low on June 25, rising as much as 24% on Tuesday, closing at $2.88. Market observers were surprised by this frenzy, noting its similarities to the surge of GameStop in 2021. Opendoor addresses the chain transaction dilemma for homebuyers through quick cash offers via algorithms

- Opendoor Technologies Inc., supported by Chamath Palihapitiya, became a symbol of the SPAC bubble and is now part of a new Meme stock surge despite a stagnant real estate market.  
- The company's stock price surged over 460% since hitting a low of 51 cents, driven by retail investor enthusiasm, although it remains under pressure from high mortgage rates and housing prices.  
- Market observers express concern over whether investors truly understand Opendoor's business model, likening Meme stock investments to following social media trends rather than informed decision-making.

The game station of the real estate industry? Opendoor surged 460%, igniting a new wave of Meme stocks frenzy