The Opendoor Meme Frenzy Isn’t the Next GameStop
A housing tech stock has been on a tear, but there’s little sign we are back in the frothy days of 2021.
Attention stocks.
Photographer: Michael Nagle/Bloomberg
Opendoor Technologies Inc., a purveyor of residential real estate, has sextupled thus far in July with little news to justify the surge. Investors left the company for dead a few years ago when the housing market froze up, and Wall Street was starting to forget that it even existed. The company received a Nasdaq delisting notice because its stock price had been hovering below the minimum-price requirement of $1. Then a few weeks ago, the stock started to perk up, and an Opendoor bull named Eric Jackson started attracting attention on social media. Now, it has a market cap of $2.3 billion, and people are asking themselves if it’s indicative of froth in the broader US equity market.
I doubt it.