Opendoor Technologies (NASDAQ:OPEN) has staged a remarkable market comeback, with its stock surging over 175% this week alone, reversing a year-to-date decline of more than 50%. The rally was ignited by a wave of retail speculation following a key endorsement from hedge fund manager Eric Jackson.
Jackson, of Toronto-based EMJ Capital, used social media last week to highlight Opendoor’s leaner cost structure and push toward profitability. His comments appeared to galvanize investors, causing the stock to spike as much as 39% on Friday and secure its largest weekly gain on record.
The surge was supported by immense trading activity, with approximately 340 million shares changing hands on Friday—more than three times the typical volume. According to S3 Partners, short interest stood at about 24% of the free float, creating conditions ripe for a classic short squeeze. The options market also saw a frenzy of activity, with call volumes hitting record highs. However, a late increase in put option buying suggests some traders are positioning for a reversal after the stock’s parabolic run.
Opendoor, which went public via a SPAC in 2020, had seen its profile diminish since its pandemic-era boom. This week’s performance underscores a persistent market dynamic where heavily shorted stocks can explode with the right mix of social media fuel and trading volume. Whether the rally is sustainable or will face a sharp correction remains uncertain, but for now, Opendoor is firmly back in the spotlight.
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