TLDR
- Rob Schneider hinted at buying OPEN stock through social media, causing morning surge
- Interim CEO purchased 30,000 shares in August, news circulated Monday
- Social media campaign wants co-founder Keith Rabois back, no confirmation from him
- Stock up 170% this month, over 1200% from June low of 51 cents
- High 24% short interest may amplify price swings
Opendoor Technologies stock whipsawed Monday as meme stock mania continued driving volatile trading. Shares jumped 10% in early trading before reversing course and closing down 3.8%.
The morning rally started after comedian Rob Schneider suggested he might invest in the real estate technology company. Eric Jackson, who leads the “OPEN Army” on social media, teased Sunday that a celebrity comedian would announce Opendoor support Monday.
Jackson posted it wouldn’t be Drake but hinted at another comedian making a buying announcement. Rob Schneider later quoted Jackson’s post, writing “Shhhhhhh… Let me BUY it FIRST!!!!”
Jackson seemed to confirm Schneider as the mystery investor, posting “Ladies and germs… Welcome to the OPEN Army!!!” However, no official investment confirmation emerged.
The social media buzz fueled Opendoor’s recent retail trading surge. Voices like Anthony Pompliano have promoted the stock’s turnaround potential across platforms.
CEO Purchase Adds Trading Volume
Monday’s heavy trading also stemmed from reports about interim CEO Shrisha Radhakrishna purchasing 30,000 shares. Trading volumes exceeded the 65-day average by midday.
The CEO purchase actually occurred August 28 when Radhakrishna became temporary CEO after Carrie Wheeler’s departure. The delayed news circulation created confusion about fresh buying activity.
Another factor driving volatility was a weekend social media campaign calling for co-founder Keith Rabois to return. The campaign gained traction among retail traders but received no response from Rabois.
There’s been no indication Rabois would consider returning to the company he helped establish. The speculation appears driven by online enthusiasm rather than corporate developments.
Short Interest Amplifies Movements
High short interest may be magnifying the stock’s price swings. More than 24% of outstanding shares were held by short sellers as of mid-August.
This level means upward moves could trigger short squeezes. When shorts cover positions, it creates additional buying pressure that accelerates price increases.
Opendoor shares have gained 170% over the past month. From its 52-week low of 51 cents on June 26, the stock is up more than 1200%.
This rally occurred despite business challenges. The company’s iBuying model has struggled in the current housing market with high interest rates dampening activity.
Market participants expect Federal Reserve rate cuts could improve conditions. Lower rates typically boost housing activity by making mortgages more affordable.
However, recent stock movements appear disconnected from fundamental performance. Retail traders have turned Opendoor into a meme stock driven by social media sentiment rather than financial metrics.
Monday’s volatility demonstrated why the stock remains risky for traditional investors. While traders profit from short-term swings, the unpredictable nature makes it unsuitable for buy-and-hold strategies.
Opendoor’s business involves buying homes directly from sellers, renovating them, and reselling to new buyers. The model requires favorable market conditions for consistent profits.
