Opendoor Technologies Inc.'s 400% surge fueled by meme-stock hype and short squeeze. Click for why OPEN is a speculative play ahead of earnings on August 5.

Despite the enthusiasm, Opendoor has significant financial troubles. The company's top line has plummeted from its height in 2022. The company's current annual run rate is well under a third of its 2022 sales. Opendoor has also never turned a profit and has significant negative cash flow.

A surge in shares of residential real estate platform Opendoor Technologies has been boosted by the portfolio manager of a small Canada-based hedge fund, Eric Jackson.

The latest meme-stock frenzy shows that “market psychology and crowd behavior can sometimes matter more than the numbers,” says Capital.com analyst Daniela Sabin Hathorn

The ticker $OPEN has been heavily cited on WallStreetBets, the online forum behind the infamous GameStop mania in 2021.

Opendoor Technologies shares surged as much as 24% Tuesday before reversing early gains, as retail investors drove wild swings in the meme stock.

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.

Opendoor Technologies (OPEN) shares soared as much as 121% during intraday trading before closing up 42.6% on Monday, as retail investors drove a meme stock-style rally sparked by upbeat remarks from an investor last week.