Opendoor Technologies Inc (NASDAQ:OPEN) shares are off to another strong start in early trading Tuesday as retail traders continue to bid up the name. Here’s everything you need to know.
What To Know: Opendoor technologies closed Monday up 42.7%, adding to gains of more than 480% over the past month. The stock gained significant attention from retail traders last week after hedge fund manager Eric Jackson touted the stock as a potential “100-bagger” over the next few years.
Jackson suggested that the stock had become mispriced as investor sentiment soured in response to supply and demand imbalances in the housing market. He indicated in a post over the weekend that Opendoor shares should be trading at $40 right now.
Opendoor’s high short interest made it a popular target for retail traders and the stock has become the latest “meme stock.” The latest short interest data from Benzinga shows that 21.57% of the float is sold short, down from 24.3% about two weeks earlier. Short covering is likely playing a role in driving some of the outsized gains in shares in recent weeks.
The strong momentum driving big gains in the stock has also sparked some frenzied buying in related names like Offerpad Solutions Inc (NYSE:OPAD) and Rocket Companies Inc (NYSE:RKT), which are also heavily shorted, per Benzinga Pro.
Original meme stocks GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) even started to see some increased attention on Monday as traders discussed the names as potential short squeeze opportunities across social platforms. Notably, Kohl’s Corp (NYSE:KSS) shares were up about 75% on Tuesday following a surge in mentions on socials.
Several of the aforementioned names are seeing increased mentions across various social platforms and have been trading on above-average volume in recent sessions. The retail crowd has had a habit of targeting heavily shorted stocks ever since traders across Reddit‘s r/WallStreetBets sparked a massive short squeeze in GameStop and AMC in early 2021.
Arguably the most famed trader from that retail movement is Keith Gill, also known as “Roaring Kitty.” GameStop and other meme stocks tend to experience increased trading volume whenever Gill is active on social media. His latest post on social platform X was exactly six months ago.
Gill went quiet on social platforms for three years after playing a leading role in the historic 2021 meme stock craze. He returned to social media last summer, made several cryptic posts on X, shared position updates on Reddit and even held a livestream during market hours on his YouTube channel. Several meme stocks saw short-lived price increases during that time.
Opendoor Technologies shares were up 22.9% at $3.94 at the time of publication Tuesday, according to Benzinga Pro. Offered shares were up about 19% and Rocket Companies shares were up about 3% at last check. GameStop and AMC were not moving much, but both stocks were seeing an uptick in trading volume at the time of writing.
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