Shares of Opendoor Technologies (OPEN) rose over 3% in pre-market trading on Thursday, extending its 14% gain on the previous day. Over the past five days, OPEN stock has surged nearly 35%. The latest surge came as the online home-selling company announced a major expansion move. This followed a major leadership overhaul last week, which has fueled increased trading activity in recent days.
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Yesterday, Opendoor announced plans to expand its real estate services nationwide in the coming weeks, up from about 50 markets. Under this plan, the company will work closely with local real estate agents.
What’s Happening with OPEN Stock?
Year to date, OPEN shares have skyrocketed over 500%, fueled largely by a wave of meme-stock enthusiasm from retail traders. The stock has moved widely within a 52-week range of $0.51 and $10.70 and is currently trading around $10.21, showing strong investor interest and stock volatility.
Besides its expansion plans, a major catalyst for the stock recently has been leadership changes. Last week, Opendoor named Kaz Nejatian as its new CEO, with co-founders Keith Rabois and Eric Wu returning to the board. Furthermore, the leadership team emphasized plans to leverage AI tools to simplify home transactions and make them more predictable.
The Flip Side Investors Can’t Ignore
Despite recent gains, the bear case for OPEN remains strong. The company faces ongoing losses and a business model sensitive to housing market swings. Its meme-stock status has also drawn speculative trading, increasing volatility and liquidity risks. Additionally, Opendoor’s cash burn and uncertain path to profitability raise questions about its long-term viability. While insider buying may boost sentiment, it does little to address these fundamental challenges.
Looking ahead, potential investors should tread carefully and weigh the risks of Opendoor’s turnaround amid an uncertain outlook.
Is OPEN Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on OPEN stock based on one Buy, two Holds, and five Sells assigned in the past three months. Furthermore, the average OPEN price target of $1.02 per share implies 90% downside risk.
