It’s no surprise that Opendoor Technologies, which trades under the ticker symbol $OPEN, has enjoyed a remarkable recovery on its share price. It has literally tripled in value within one week alone! This little-known penny stock made big waves on the WallStreetBets Reddit forum. On the heels of Monday’s trading session, it exploded over 42% closing at $3.21 per share! Only days before, the company’s shares had peaked at $4.97.
Opendoor Technologies has boomed after a slow start. Until this past year, its shares languished largely beneath $1. The firm went public in 2020 through a reverse merger with a special function acquisition firm (SPAC). This decision came amidst a boom in SPAC IPOs, largely due to low interest rates and a market exuberance ignited by the COVID-19 pandemic.
At present, 22% of Opendoor’s float is sold short. That’s an unusual amount of investor speculative frenzy regarding the company’s stock performance. The company’s recent gains have been attributed to increased interest from retail investors, particularly after hedge fund manager Eric Jackson began promoting the stock online. Jackson himself has pitched that Opendoor Technologies could be worth $82 a share.
On Monday, Opendoor trading volume was a staggering 1.9 billion shares, over 1,700% of its three-month average. The increase in trading volume indicates a reaffirmed bullish sentiment for the stock. As a result, it’s generated a lot of buzz online—especially on social media platforms.
Bespoke Investment Group noted the trend, stating, “That stock is up 500% in three weeks. Total call open interest has tripled over that time period.”
The TikTokification of capital markets has returned in the form of Opendoor Technologies. As you know, retail investors and social media users are talking more than ever about this firm. As one post on WallStreetBets summarized this sentiment perfectly with “HODLTHE($OPEN)DOOR,” HODL, an acronym for Hold On for Dear Life.