Dating back to its early history, Opendoor Technologies (NASDAQ: OPEN), the leading online home flipper, is one of the worst-performing stocks in the market.
Shares have collapsed, as a business that worked during the real estate boom of the pandemic has gone bust amid soaring interest rates and a weak housing market. Homeowners who bought or refinanced at rock-bottom rates during the pandemic are reluctant to sell. The stock is down 96% from its peak in 2021.
Despite that history, the real estate stock caught fire in recent weeks, seemingly as part of a meme stock boom, as chatter around the stock has increased on Reddit’s WallStreetBets Page and X.com. Remarkably, the stock is up 160%, even though there have been no noteworthy changes in the company’s fundamental business.