Opendoor, the company that kicked off the July meme stock rally, is jumping again this month.
Shares rose as much as 25% on Thursday, extending a streak of gains in recent days.
News of a stake taken by a prominent investor and more hype from hedge funder Eric Jackon are boosting shares.
The move: Opendoor Technologies jumped as much as 25% on Thursday to $3.03 per share.
The stock, which soared earlier this summer and kicked off a broader rally in a handful of new meme stocks, is up 84% year-to-date.
The chart:
Why: The stock embarked on a stellar run in early July and then petered out toward the end of the month. Thursday’s rally is an extension of a fresh winning streak that started in recent weeks, with the stock up by about 60% in five days.
A few things seem to be driving the latest gains.
On August 12, well known investor and tech entrepreneur Anthony Pompliano shared that he had acquired a stake in Opendoor, citing bullishness among the retail crowd as a reason for his optimism.
“I believe retail investors are a powerful force in financial markets. They can help a company grow, generate new ideas, and bring valuable attention to a narrative,” he wrote in a post on X.
Meanwhile, Eric Jackson, the hedge fund manager who launched the rally by posting his own bullish thesis on Opendoor stock in early July, has been taking a more activist approach to the stock.
In recent days, he’s criticized CEO Carrie Wheeler. In an interview this week, Jackson said he’d be open to joining the board of Opendoor to push for change in the company.
Jackson’s continued bullishness and his activist stance have reinvigorated discussions of the stock among traders on social media, with mentions of the company up 234% across Reddit’s investing forums in the last 24 hours, according to data from sentiment tracker Ape Wisdom.
What it means: While the July rally proved fleeting, Opendoor stock remains popular among retail, and with fresh backing from Jackson, expect the hype to stay elevated.
Part of the excitement stems from Jackson’s successful call on Carvana. In 2023, he made a bullish call on the online used car dealer, which at the time was trading below $5 a share. Today the stock is above $340.
“I’m in this for the long run,” he told Business Insider last month, regarding his view of Opendoor. “I’m not here to pump up a stock and jump out of it.”
Read the original article on Business Insider
