Opendoor Technologies Inc (NASDAQ:OPEN) shares are trading lower Tuesday morning, experiencing a pullback amid heightened investor attention. The stock has otherwise seen a substantial year-to-date increase of around 127%.
What To Know: The stock’s recent powerful rally, which saw it surge over 500% since a low on June 25, has been driven by several key factors that have reignited retail investor interest. A primary catalyst was the departure of CEO Carrie Wheeler, who stepped down amid mounting pressure from activist investor Eric Jackson.
The company’s Chief Technology and Product Officer, Shrisha Radhakrishna, has been appointed interim CEO to guide Opendoor through its strategic transition from a single cash-offer model to a more diverse real estate platform.
This leadership change was lauded by figures such as investor Anthony Pompliano, who disclosed a stake in the company and called the move a “win for retail investors”. The rally gained further support from endorsements by other major investors, including Paul Tudor Jones.
From a technical standpoint, the stock recently formed a “Golden Cross,” a bullish signal where the 50-day moving average crosses above the 200-day moving average. The intense social media buzz was exemplified by an unusual, and later debunked, story of a supposed North Korean investor, which was sparked by a post from Eric Jackson. Following the stock’s recent, dramatic run-up, Tuesday’s trading suggests a period of consolidation.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which are designed to help investors identify the strongest and weakest stocks, Opendoor presents a distinct profile based on its scores. The company scores exceptionally high on Momentum with a rating of 94.72, indicating very strong recent price performance and investor interest.
It also shows a solid Value score of 71.31, suggesting it may be undervalued relative to its financial fundamentals. In contrast, its Growth score is significantly lower at 10.54, pointing to weakness in its past or projected revenue and earnings growth.
Price Action: According to data from Benzinga Pro, OPEN shares are trading lower by 1.06% to $3.76 during Tuesday’s session. The stock has a 52-week high of $4.97 and a 52-week low of $0.51.
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How To Buy OPEN Stock
By now you're likely curious about how to participate in the market for Opendoor Technologies – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Opendoor Technologies, which is trading at $3.65 as of publishing time, $100 would buy you 27.4 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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