Opendoor Technologies Stock Skyrockets: Here’s Why It’s Dominating the Market This Week

Opendoor Technologies is on a tear—shares are surging like a meme stock on Reddit hype. But this isn’t just retail frenzy; there’s real momentum under the hood.

The catalyst? A perfect storm of market conditions. Housing data shocks, tech-driven efficiency gains, and shorts getting squeezed harder than a 2017 Bitcoin bull run. Opendoor’s algorithm-powered flipping model is finally printing profits instead of burning cash.

Wall Street’s late to the party—again. Analysts are scrambling to upgrade price targets after months of dismissing iBuying as a pandemic fad. Meanwhile, the company’s crushing quarterly estimates while traditional realtors still treat digital paperwork like rocket science.

Cynical take? The market’s rewarding Opendoor for doing what every hedge fund dreams of—turning illiquid assets into tradable commodities. Just don’t mention what happens when the music stops.

Announced CEO search, meme stock mania

Opendoor has turned into a meme stock due to its high short interest, which sits at an estimated 23% of its outstanding shares. High-profile investors have begun to promote the stock on financial media outlets, which has driven the share price higher and with major volatility.

This kept driving Opendoor's stock up higher this week. Now, the company has announced the retirement of current CEO Carrie Wheeler and a search for a new leader for the company.

It is unclear why a new manager was wanted now, but this has gotten meme stock investors even more bullish and sent the stock higher in trading today. 

Image source: Getty Images.

The numbers behind Opendoor

Opendoor stock is one of the best performers of this summer. However, its financials do not back up this story.

Last quarter, Opendoor reported revenue of $1.6 billion, gross profit of just $128 million, and a net loss of $29 million. The company has never generated positive net income, with a $300 million net loss over the last twelve months.

Opendoor's business model revolves around buying homes from people, fixing them up, and selling them on the open market, hopefully at a higher price. This is what's known as home flipping, with iBuying taking this model from individuals and bringing it to a national scale. So far, Opendoor has not proven it can actually scale this model and generate a profit.

Its revenue is down well from all-time highs. The company is struggling to grow because of the debt needed to finance home purchases, which puts it in a bit of a pickle.

This is not a good business model, and no matter who the CEO is, you cannot change the difficulties of home flipping. Opendoor remains a meme stock, but it is not a great long-term investment.