| Key Points: – Opendoor shares surge nearly 95% as retail traders rally behind turnaround potential. – Market buzz fueled by comparisons to Carvana’s 100x rebound. – Rebound renews optimism for small-cap proptech firms navigating post-crisis recovery. |
Shares of Opendoor Technologies (Nasdaq: OPEN) have soared nearly 95% in Monday trading, extending a jaw-dropping run that saw the online home-buying platform triple in value last week. The catalyst? A mix of bullish small-cap speculation, retail investor momentum, and echoes of past high-profile recoveries.
The sudden surge began after EMJ Capital’s Eric Jackson revealed his firm had taken a position in Opendoor, citing the potential for a “100-bagger” return — a term used to describe stocks with the potential to return 100 times the original investment. Jackson compared Opendoor’s situation to that of Carvana (CVNA), which went from the brink of collapse in 2023 to becoming one of the market’s biggest comeback stories.
Opendoor, once a darling of the real estate tech boom, had lost nearly 98% of its market cap since peaking at nearly $36 per share in early 2021. It had been teetering on the edge of delisting from the Nasdaq after trading below $1 for over 30 days this year. In a bid to remain listed, the company proposed a reverse stock split in June to artificially lift its share price — but that plan may now be unnecessary.
As of Monday, Opendoor shares had closed above $1 for four consecutive sessions, and were trading above $4 by midday — a potential lifeline to retain its Nasdaq listing and buy time for a true turnaround. This rally, although speculative in nature, brings fresh attention to the broader small-cap property technology (proptech) space.
The momentum gained steam in familiar territory: Reddit’s WallStreetBets community. Traders shared screenshots of their Opendoor positions and praised the stock’s volatility, pushing it deeper into meme stock status. While much of the price action has been driven by speculative enthusiasm, the fundamental hope lies in the company’s expected move into positive EBITDA territory in the coming earnings cycle — which could signal a shift from survival to sustainable growth.
For investors in the small and micro-cap space, Opendoor’s rebound offers a powerful reminder of the volatility — and opportunity — inherent in post-crisis tech sectors. As housing markets stabilize and interest rates gradually ease, companies that can operate leaner and show clear paths to profitability are regaining investor confidence.
This momentum has also put a spotlight on similar small-cap proptech and real estate platforms that are undervalued but show operational potential. While it’s unlikely most will see meme-like surges, Opendoor’s rally highlights a window of opportunity for middle-market investors to identify turnaround plays before institutions catch on.
Whether this rally marks a sustainable turnaround or a speculative detour, one thing is clear: the market is watching, and the appetite for underdog small caps is alive and well.