Key Points

• Opendoor turned into a meme stock as high short interest resulted in a July short squeeze.

• That bubble is bursting as $1 billion has been shaved off Opendoor's market cap since last month's peak.

• A soft July jobs report and falling mortgage rates should help Opendoor.

• 10 stocks we like better than Opendoor Technologies ›

Shares in real estate technology company Opendoor Technologies (NASDAQ: OPEN) have been on a wild ride this year. The stock steadily declined throughout the first half of 2025, losing about 65% through June. But July was another story with shares skyrocketing 245%.

Opendoor stock reversed course this week, though, dropping nearly 20% at its low. As of early Friday, shares were still lower by 12% for the week, according to data provided by S&P Global Market Intelligence.

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Bubbles always burst

The recent story around Opendoor stock really hasn't been about its underlying business. Shares were dropping earlier in 2025 as the company reported declining revenue in a difficult housing market. Opendoor caught the eye of retail investors and traders who turned it into a meme stock in July.

More than 21% of the stock's float was held by short-sellers as of mid-July. That high short interest resulted in a short squeeze. But that bubble has now burst, shaving $1 billion from Opendoor's peak market cap last month.

An improving housing environment

Opendoor reported improving second-quarter earnings this week. Revenue was back in growth mode compared to last year's second quarter, and was above the company's prior guidance. That wasn't enough to boost the stock, though, as Opendoor is still losing money, and the meme stock surge hasn't fully deflated.

Once that occurs, though, things could be looking up for Opendoor's business. A soft jobs report last week has improved the chances for Federal Reserve interest rate cuts. Mortgage rates have already dropped because of it, too.

For now, though, Opendoor says revenue will, in fact, decline sequentially in the third quarter. That might mean there's more downside in the near and medium term for Opendoor stock. Investors who rode the meme wave will likely continue to bail out.

Longer-term, a strong recovery in the housing market could help Opendoor reverse course with shares marching higher again. Though that probably won't be anytime soon.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*

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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• Trump's tariff announcement back in April sent many stocks crashing, and it turned out to be a great buying opportunity.

• Shares of Robinhood Markets, Rocket Lab, and Opendoor Technologies have soared in recent weeks and months.

• These 10 stocks could mint the next wave of millionaires ›

When U.S. President Donald Trump announced a raft of tariffs back in April, he referred to it as "Liberation Day" for the country. What it ended up being was a blow for many stocks, reminiscent of the COVID lows that occurred back in March 2020. Like buying stocks amid that panic, investors who bought back in April have enjoyed some fantastic returns.

Three stocks that have been among the biggest winners since the Liberation Day tariffs were announced are Robinhood Markets (NASDAQ: HOOD), Rocket Lab Corporation (NASDAQ: RKLB), and Opendoor Technologies (NASDAQ: OPEN). Here's a look at how they've performed and whether they are still good buys. The following returns are as of the close on Aug. 4.

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Robinhood Markets: Up 152%

Fintech stock Robinhood fell to less than $40 a share shortly after Liberation Day. But as tariffs were paused and negotiations have been taking place, investor sentiment has rebounded, and shares of the popular trading platform have soared since then.

Robinhood's trading platform is popular with retail investors, and it's often a good gauge of just how much excitement is in the stock market. It has also been experiencing some terrific growth due to that bullishness.

On July 30, the company reported second-quarter results, and revenue rose 45% year over year, totaling $989 million. Its net income also more than doubled to $386 million. The company has launched tokenization, which Chief Executive Officer Vlad Tenev calls "the biggest innovation our industry has seen in the past decade." It's currently only available in Europe, but it lets investors hold stock tokens via the blockchain, giving investors greater access to the markets with no commissions.

Robinhood's focus on innovating and catering to retail investors makes it a compelling growth stock to own. It is expensive, however, trading at more than 50 times trailing earnings. But for the growth potential it possesses, the premium may be justifiable. If you're willing to buy and hold for years, it may not be too late to buy the stock.

Rocket Lab: Up 145%

In early April, Rocket Lab stock was trading below $20; as of Monday's close, it was closing in on $45. Rocket Lab is in the business of sending rockets into space, with 68 launches of its Electron rocket under its belt already. A big catalyst may still be waiting in the wings if Rocket Lab's larger Neutron rocket makes a successful debut later this year. That larger rocket can take on bigger payloads and result in greater growth opportunities and missions for the company in the future.

News of tariffs may have worried investors that inflation might rise, which could result in higher interest rates. This would be bad news for money-losing businesses like Rocket Lab that are likely going to need to raise a lot of cash to expand operations. The company incurred a net loss of more than $190 million last year, and it burned through $49 million in its day-to-day operations.

Rocket Lab is a bit of a risky buy, but if you're willing to hang on amid its early growth stages, it could still have a lot more upside in the long run.

Opendoor Technologies: Up 144%

Opendoor is an even riskier stock than Rocket Lab. It's in the business of buying and selling houses. It helps sellers quickly sell their homes, allowing them to avoid the hassles of dealing with listings and showings, which can take months. Opendoor is effectively hoping to flip houses for a profit, and it may need to make upgrades and repairs before putting them on the market.

It's a capital-intensive business, which is why it is also likely to need many cash infusions. Its shares were trading at about $1 on Liberation Day. While they continued to fall after April, they have skyrocketed a staggering 300% in just the past month in what's a great example of how overly excited retail investors have become of late with highly risky stocks.

Opendoor, unfortunately, is largely a meme stock -- and other companies that tried the home-flipping business have flopped. Its gross profit margins are low, which makes it difficult to see the company obtaining a path to profitability anytime soon. Last year, it incurred a net loss of $392 million on sales totaling $5.2 billion. And with its business dependent on a strong housing market, it's not an ideal investment to hold at a time when there's a lot of uncertainty about the economy. This is one stock you may want to avoid as the risk is incredibly high.

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When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500.

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*Stock Advisor returns as of August 4, 2025

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.

Key Points

• Opendoor could be the next big meme stock.

• A former activist also floated the possibility of getting involved.

• Opendoor actually built a promising online homebuying platform, but faces financial challenges.

• 10 stocks we like better than Opendoor Technologies ›

Shares of the iBuying real estate platform Opendoor (NASDAQ: OPEN) have absolutely ripped this week on meme stock activity and hopes that an activist investor could get involved. Since the market closed last Friday, shares have blasted roughly 109% higher, as of 2:48 p.m. ET Thursday.

The next big meme stock?

Meme stocks haven't gone away since the GameStop saga and always seem to poke their head up when the market is doing well. According to Stocktwits' editor-in-chief Tom Bruni, interest in Opendoor on the social platform increased fourfold between Monday and Tuesday of this week, as measured by page views.

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The original meme stock sub-Reddit r/WallStreetBets also discussed Opendoor this week, and 560,000 contracts with bullish bets were traded, as of Wednesday. At the end of June, more than a quarter of the company's float was sold short, a key ingredient for a short squeeze.

Additionally, EMJ Capital founder Eric Jackson started tweeting about the company this week and potentially getting involved as an activist. Jackson sees potential in the company's iBuying platform, which offers people a quicker way to sell their homes online, and then resells the properties. iBuying typically involves higher fees than a real estate agent might charge.

Jackson also expressed frustration with management, but ultimately floated the idea that the company could be worth as much as $82 per share under the right turnaround plan and if the macro-environment cooperates. The stock traded around $1.56 per share, as of this writing.

Does the thesis have merit?

From a financial perspective, Opendoor has a high cash burn rate and high debt levels, although a lot of the debt is asset backed. Opendoor has also struggled due to the high-interest rate environment, which has suppressed most of the real estate sector. Lower rates could be a big tailwind.

Overall, I think Opendoor's business model is much more compelling than other meme stocks in dying industries like GameStop and AMC. But due to the financial challenges and uncertainty in the macro-environment, investors still need to treat this a highly speculative investment. Only invest what you can afford to lose.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

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*Stock Advisor returns as of July 15, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• The meme stock rally continued in Opendoor stock.

• After opening up significantly higher, the stock faded in regular trading.

• With the challenges in the housing market ongoing, the business still seems fundamentally weak.

• 10 stocks we like better than Opendoor Technologies ›

One day after soaring more than 30% on a meme-driven rally, shares of Opendoor Technologies (NASDAQ: OPEN) were up again, though this time there were signs that the rally, which seems to be a combination of a short squeeze and meme stock behavior, was starting to break.

As of 2:36 p.m. ET, Opendoor was up 8.4% on high-volume trading after gaining more than 30% earlier in the session.

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The Opendoor surge continues

Shares of Opendoor have now more than tripled in just a few weeks, seemingly after a post on Reddit's WallStreetBets page argued that the company could be the next Carvana, which has soared more than 10,000% since recovering from near-bankruptcy a few years ago.

As the stock has moved higher, trading volume has soared, and it was over 466 million as of 2:39 p.m. ET, a record for the stock. With just 729 million shares outstanding, that means more than 60% of shares have changed hands, and the session is not yet finished.

Opendoor may also be experiencing an ongoing short squeeze, as 24% of the stock was sold short as of a month ago, and short-sellers have likely moved to close their bets, given the surge in the stock. However, at the current trading volume, shorts shouldn't have a problem covering.

What's next for Opendoor

Opendoor stock surged in premarket trading and peaked in the regular session shortly after the market opened. From there, the stock gave up most of its gains, showing that the rally may have run its course.

The business case for a recovery in the stock seems thin at this point as the housing market continues to be sluggish, and interest rate cuts seem less likely after the latest inflation report. Still, meme traders seem to have taken hold of the stock, and it will likely continue to be volatile over the coming days.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Jeremy Bowman has positions in Carvana. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The Razr 2025 is one of the best flip phones right now, thanks to its affordable price, but there are other phones that you may consider instead. Here are four alternatives to choose!

Opendoor Technologies' (NASDAQ: OPEN) misfortunes continue to deepen as the real estate market remains stuck, with no light showing yet at the end of the tunnel. It's joined the ranks of penny stocks and keeps sliding, down 56% this year alone and trading at dangerously low levels at under $1 per share.

Is there any hope left for Opendoor, or should investors stay far away?

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Gloom and doom

Opendoor is an iBuyer, which means it buys homes directly from sellers, fixes them up, and then sells them at a higher price. It's a simple business model that individuals have been using forever, and Opendoor takes it up a notch by scaling it into a full, digitally supported platform. It also offers an assortment of complementary services, such as an online marketplace and agent services, and it's always expanding its features to meet demand and create options for sellers and buyers.

When the company went public in 2020, interest rates were historically low, and real estate was booming. The company's strong performance has now been hampered by high interest rates and a housing market that isn't budging.

According to the latest market data, housing prices are still rising, and the median home price reached $430,838 in March. Homes sold declined by 2.7%, and the average 30-year fixed mortgage rate declined by 0.17%, but was still high at 6.7%. Homes are also selling at their slowest pace in six years, with the average home on the market for 47 days before going under contract.

Opendoor's management is tweaking its model to get the best it can out of the current circumstances. Instead of relying on its core product of making cash offers to home sellers, it's expanding its agent network with a program for agents to connect with potential homebuyers and explain the options.

It's also shifting its marketing and ad spend to find more homes for sales in the off-season, which are prepared for resale in the high season. A company as large as Opendoor believes it has the leverage to do that successfully.

Don't be fooled by earnings beats

Opendoor released its latest update this week, and although I would call it mixed, the market responded positively. Results were better than expected, and management gave a pleasing outlook.

Sales were down 2% from last year in the 2025 first quarter, but they beat Wall Street's expectations, and houses sold were down 4%. Gross profit was $99 million, down from $115 million last year, and gross margin was 8.6%, down from 9.7% last year. Net loss improved from $109 million in 2024 to $85 million in 2025, and loss per share was also better than Wall Street was looking for.

In some forward-looking metrics, it purchased 3,609 homes, 22% more than last year, but it ended the quarter with 1,051 homes under contract -- 60% lower than last year.

Beating expectations is certainly a step in the right direction, but there isn't enough progress to say Opendoor is out of the woods. A business turnaround will require a much stronger housing market, and the company doesn't have control over that. Management's work with what it does have control over is confidence-boosting, but the company will remain in a challenging position until external forces change.

The trek back up may be too long

Opendoor's platform might be better than the traditional system, but it's not good enough to beat back current headwinds. As those headwinds remain strong, Opendoor can't bounce back. At the current price, Opendoor stock trades at a price-to-sales ratio of less than 0.1, but it's not a bargain if you don't expect the stock to move higher anytime soon.

I wouldn't say there's no hope for Opendoor, but there doesn't look like any reason for investors to tie up money in this stock while the environment remains unfavorable. There are better places to park your money right now, or you might enjoy that slice of pizza.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Opendoor (NASDAQ: OPEN) was one of the most prominent companies to go public in the 2020-2021 SPAC boom, but the business couldn't live up to the hype once interest rates started rising. In this video, longtime Fool.com contributors Matt Frankel and Tyler Crowe take a closer look at Opendoor's latest results and what could be in store for 2025.

*Stock prices used were the morning prices of April 22, 2025. The video was published on April 23, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Matt Frankel has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Shares of the online housing brokerage Opendoor Technologies (NASDAQ: OPEN) plunged 23% this week, according to data compiled by S&P Global Market Intelligence, after the latest data showed that housing sales slowed to their lowest pace since 2009.

Housing inventory climbed quickly, but sales slowed as potential homebuyers shunned high prices, elevated interest rates, and economic uncertainty. With an unpredictable macroeconomic climate, investors are concerned that more pain could be ahead for the housing market and Opendoor.

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A cooling climate

The housing market showed its first dramatic signs of slowing down in March, with existing-home sales dropping 5.9% during the month compared to February. The monthly drop also represented a 2.4% decline year over year, according to data from Realtor.com.

Mortgage rates have fluctuated over the past month since President Trump announced aggressive tariffs on U.S. trading partners. But despite some temporary dips, they're still elevated, sitting at around 6.8% for a 30-year mortgage.

While not historically high, mortgage rates are much higher than they were a few years ago, and they've remained stubborn during a historic rise in housing prices. For example, the median home sales price has spiked nearly 27% over the past five years to $416,900.

These rapidly accelerating home prices were fine when buyers felt more confident in the economy and their jobs, but that's changed recently. A recent survey found that consumer confidence in where the economy is headed is at a 12-year low.

All of this is bad news for Opendoor, whose platform connects buyers and sellers. Opendoor also buys, flips, and sells homes, so the slowdown in homebuying is likely to hurt the business. Opendoor's revenue fell 26% in 2024 to $5.2 billion, and its net loss widened to $392 million. Those figures were reported before the latest housing data, meaning Opendoor could face further downward pressure.

Not a great trajectory

With sales falling in 2024 and losses widening, Opendoor was already struggling. However, the latest housing market data indicates that tougher times could come.

Even if Trump's tariffs don't spur a recession, it's evident that with consumers worried about their jobs and about price increases on goods due to tariffs, they're holding off on house purchases. And with no end in sight to the tariff uncertainty, Opendoor may continue to be affected by this negative homebuyer sentiment.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.