Why Opendoor Technologies Stock Soared 18.5% Today

Key Points

• After Opendoor's massive meme stock-fueled rally, the shares reversed last week following poor earnings.

• Shares recovered today after Opendoor's CEO took to X on Friday to address her company's retail audience.

• Opendoor's future is very much uncertain, and the stock remains high risk.

• 10 stocks we like better than Opendoor Technologies ›

Shares of Opendoor Technologies (NASDAQ: OPEN) jumped on Monday, finishing the day up 18.5%. The spike comes as the S&P 500 and Nasdaq Composite both finished down 0.3%.

The real estate technology company, which has recently become one of the newest meme stocks, is seeing shares recover after last week's poor earnings report.

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

Opendoor shares spike after last week's fall

Last week, Opendoor reported earnings showing that although top-line revenue came in above the company's prior guidance, the company is still operating deeply in the red, and that the revenue growth would reverse and decline sequentially for the next quarter.

This led to calls from the activist investor and hedge fund manager Eric Jackson -- a key figure and catalyst in Opendoor's meme stock run -- for the company's board to replace CEO Carrie Wheeler. His view, which appears to be held by many of the retail investors driving Opendoor's recent success, is that the company is sitting on a vast amount of data that could turn Opendoor into an artificial intelligence (AI)-powered real estate powerhouse.

Image source: Getty Images.

In the earnings call, Wheeler addressed operational updates but did not lay out a path to an AI-first platform. On Friday, she took to X to better engage with the retail base, giving some investors hope that their concerns will be addressed and AI will become a focus.

Opendoor is high risk

Opendoor's model is highly sensitive to interest rates. Investors are hoping its bottom line will benefit from lowered rates, which are looking more likely after last week's weak jobs report. While this is true, it is possible that those rate cuts would be accompanied by a softening economy in which housing prices could diminish. Opendoor operates in an extremely capital-intensive space, has mostly negative free-cash flows and significant debt, and has yet to turn a profit. I would avoid this stock.

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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 11, 2025

Johnny Rice 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.