Opendoor Technologies Inc. (OPEN) Soars 26%, But is it Time to Sell?

Opendoor Technologies (OPEN) surged 25.62% on Thursday, with some attributing the gain to a prominent crypto investor announcing he had personally acquired shares. The company recently regained Nasdaq compliance after trading above the minimum bid price for 12 consecutive days. Despite the rally, investors may want to consider selling due to limited upside potential compared to other AI stocks.

Opendoor Technologies (OPEN) experienced a significant surge on Thursday, with shares rising by as much as 25.62%. The catalyst for this rally was the announcement by Anthony Pompliano, a well-known crypto investor and tech entrepreneur, that he had acquired a stake in the company. Pompliano cited the bullish sentiment among retail investors as a reason for his optimism [1].

This latest rally extends a streak of gains for Opendoor, which has seen its stock price climb by about 60% in the past five days. The stock, which soared earlier this summer and sparked a broader rally in meme stocks, is up 84% year-to-date [1].

The company has been in the spotlight since July, when hedge fund manager Eric Jackson launched a series of posts on social media advocating for the stock. Jackson's continued bullish stance and his activist approach have kept discussions of the stock elevated among traders on social media platforms like Reddit [1].

Opendoor Technologies, which went public in 2020, is known for its software-driven approach to flipping homes, a strategy called iBuying. The company faced challenges in 2022 due to the surge in interest rates and was on the verge of delisting from the Nasdaq. However, it has since repositioned itself to offer homeowners a variety of options to sell, marking a shift in its business model [2].

Despite the recent gains, investors may want to consider the limited upside potential compared to other AI stocks. The company's gross margins remain thin, and while it has reported modest sales growth and reduced losses, the housing market's volatility poses a significant risk [3].

References:
[1] https://ca.finance.yahoo.com/news/opendoor-surging-again-julys-meme-035536591.html
[2] https://www.bloomberg.com/news/articles/2025-08-12/opendoor-rallies-as-crypto-influencer-pompliano-buys-shares?srnd=homepage-americas
[3] https://simplywall.st/stocks/us/real-estate-management-and-development/nasdaq-open/opendoor-technologies/news/are-investor-moves-and-product-shifts-changing-opendoor-tech