Offerpad Solutions Inc. OPAD gained 2.15% to $5.22 in after-hours trading on Tuesday due to Federal Reserve rate cut speculation, which benefits the online real estate company's business model. The stock's volatility mirrors that of sector peer Opendoor Technologies Inc. OPEN, with investment banks forecasting multiple Fed easing rounds through 2026. OPAD has surged 325.83% in the last month, driven partly by retail investor interest.
Offerpad Solutions Inc. (OPAD) gained 2.15% to $5.22 in after-hours trading on Tuesday, September 2, 2025, as investors reacted to speculation about a Federal Reserve rate cut. The stock's surge follows a 325.83% increase in the past month, driven partly by retail investor interest [3]. OPAD's performance mirrors that of sector peer Opendoor Technologies Inc. (OPEN), which has also seen significant gains in recent weeks.
The Federal Reserve's dovish stance, as indicated by Federal Reserve Governor Christopher Waller's support for a 25 basis point rate cut, has fueled optimism among investors. Waller, who is seen as a potential candidate for the next Fed Chair, believes that the U.S. potential inflation rate is nearing the Federal Reserve's long-term target of 2%, and that appropriate risk management suggests an immediate interest rate cut [2]. This view aligns with the broader market sentiment that expects multiple Fed easing rounds through 2026, as forecasted by leading investment banks [3].
OPAD's business model, which focuses on iBuying, is expected to benefit from lower interest rates. Lower rates can make mortgages more affordable, potentially increasing demand for real estate services. The company's stock has also been buoyed by the retail investor frenzy surrounding its biggest competitor, Opendoor Technologies Inc. (OPEN) [3]. This "meme stock" resurgence has spread to other similar real estate and property-focused platforms, with OPAD emerging as a key beneficiary.
The stock's volatility mirrors that of OPEN, with both experiencing significant price movements in recent weeks. OPAD's momentum score has witnessed a spike, increasing 74.19 points over the past seven days [3]. This momentum, coupled with the anticipation of Fed rate cuts, has driven OPAD's stock price higher.
Investment banks and analysts remain divided on OPAD's prospects. While some see the company's innovative data-driven strategies as a significant advantage, others are cautious due to its capital-intensive model and ongoing operational pressures. As the Federal Reserve continues to signal a dovish stance, investors will likely keep a close eye on OPAD's performance and the broader economic data to gauge the impact of rate cuts on the real estate sector.
References:
[1] Reuters. (2025). Offerpad Solutions plunge on planned $100 million stock sale. [URL](https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3UK0YD:0-offerpad-solutions-plunges-on-planned-100-million-stock-sale/)
[2] Futunn. (2025). Federal Reserve Chairman nominee Waller supports a 25 basis point rate cut. [URL](https://news.futunn.com/en/post/61350608/federal-reserve-chairman-nominee-waller-supports-a-25-basis-point)
[3] Benzinga. (2025). This OpenDoor competitor is quietly riding the meme stock frenzy. [URL](https://www.benzinga.com/markets/penny-stocks/25/08/47353135/this-opendoor-competitor-is-quietly-riding-the-meme-stock-frenzy-momentum-spikes-amid-recent-rallies)
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