Opendoor stock (NASDAQ: OPEN) jumped nearly 22% on Monday.
It’s the latest in a string of big moves for the digital real estate company, which has been on a tear this quarter after posting strong second-quarter results and shaking up its leadership team.
Investors have been piling in, and the stock’s run has turned heads.
What stood out this time is that the rally wasn’t tied to any fresh announcement from the company. The surge came mostly from a wave of retail buying and a spike in meme-stock chatter on Reddit and X.
That kind of social media buzz has been behind much of the volatility in Opendoor shares this year, with sentiment often pushing the stock around more than the company’s actual fundamentals.
Opendoor stock rebounds despite debt concerns
Opendoor’s mid-August rally came after a week of heavy trading and high short interest, which analysts say set the stage for a short squeeze that pushed the stock higher.
The momentum also ties back to the company’s second-quarter results, which showed revenue of $1.6 billion and its first positive adjusted EBITDA since 2022, a sign of progress, even if plenty of challenges remain.
Adding to the mix, CEO Carrie Wheeler stepped down under pressure from activist investors, a move that gave the rally even more energy.
The board named Shrisha Radhakrishna as interim president, and traders are betting that could mean fresh strategy and maybe a turnaround.
At the same time, Opendoor cleared Nasdaq’s minimum bid price requirement, easing fears of delisting that had been hanging over the stock.
Even with all the buzz, the questions around Opendoor’s actual business haven’t really gone away. The company is still sitting on a lot of debt as the debt-to-equity ratio is up near 3.5 and it lost about $300 million over the past year.
That’s hard to ignore. And while the stock has been bouncing around on momentum, it’s still way below where it was in 2021.
For plenty of investors, that gap is a reminder of just how shaky the housing market is right now and how unclear Opendoor’s path to steady profits actually looks.
What analysts say?
Market watchers are split on Opendoor’s recent jump. Many say the rally looks more like a speculative run than a reflection of the company’s actual business, driven by retail buying and social media buzz rather than fundamentals.
The second-quarter earnings beat and clearing Nasdaq requirements are positives, but analysts warn that heavy debt and a tricky housing market still pose real risks.
Some remain cautious, noting that high short interest could keep the stock bouncing wildly. A few have even lowered their price targets well below current levels.
They point out that Opendoor’s shift from a capital-heavy iBuying model to a more agent-focused strategy is still unfolding, and the stock could swing sharply as investors try to balance meme-stock momentum with the company’s real performance.
The post Opendoor stock climbs 22% on Monday, but here’s why analysts are advising caution appeared first on Invezz