Opendoor Stock Continues To Rally: What's Fueling The Momentum?

Opendoor Technologies Inc OPEN shares are rising during Thursday’s trading session. The upward movement comes amid heightened trading activity and a wave of optimism in the real estate sector.

What To Know: Hedge fund manager Eric Jackson recently highlighted Opendoor stock as a potential "100-bagger" over the next few years, sparking retail interest in the heavily-shorted name. Short interest remains high with 23.86% of the float sold short at last check, according to Benzinga Pro data.

Professional Capital Management CEO Anthony Pompliano has also shown interest in the stock, countering claims that Opendoor is merely a meme stock. Amid continued support, retail traders have rallied around the stock, underscoring a robust community-driven sentiment.

However, shares took a hit following the company’s second-quarter results and the unexpected resignation of CEO Carrie Wheeler.

Following weeks of pressure from investors, Wheeler stepped down from her roles at the company on Friday, effective immediately. Shrisha Radhakrishna was appointed as president and interim leader of Opendoor. 

Currently, the stock trades approximately 34% from its 52-week high of $4.97, but remains well above its 52-week low of 51 cents. Housing-related stocks have started to perk up in anticipation of rate cuts later this year.

Trading volume in Opendoor stock has soared in recent months, with approximately 116 million shares changing hands on Thursday as of the time of writing.

Technical indicators present a mixed picture. The Relative Strength Index (RSI) stands at 72.34, suggesting overbought conditions that could lead to a pullback. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a bullish crossover, though the lines are converging, hinting at potential weakening momentum. This may be compounded by management’s guidance, which fell short of consensus estimates.

Analysts also remain cautious. Keefe, Bruyette & Woods maintained an Underperform rating with a $1 price target last week, while Zelman & Associates downgraded the stock to Underperform with a $1 price target a week earlier. UBS also recently maintained a Neutral rating and lifted its price target to $1.60 from $1.30.

Benzinga Edge rankings highlight moderate fundamentals, with a Value ranking of 69.17/100 and a Momentum ranking of 96.18/100. However, a low Growth ranking of 10.61/100 suggests potential challenges ahead for Opendoor.

OPEN Price Action: Opendoor shares were up 9.47% at $3.52 at the time of publication on Thursday, according to Benzinga Pro.

Read Next:

• Anthony Pompliano Says Opendoor Is Not A ‘Meme Stock’ — Retail Investors Are Like ‘A Decentralized Hedge Fund’

Photo: courtesy of Opendoor.