Core Viewpoint - Opendoor Technologies Inc. is experiencing a surge in stock price driven by retail investors, despite ongoing challenges in the real estate market, including high mortgage rates and home prices [1] Company Overview - Opendoor holds over 7,000 residential properties valued at approximately $2.4 billion as of March 31, with operations in 50 markets [2] - The company was founded in 2014 to address the issue of homeowners needing to sell their existing properties to purchase new ones, offering quick cash offers through algorithms [2] - Opendoor's stock peaked at $35.88 in February 2021, driven by low interest rates and rising home prices, attracting competitors like Zillow and Redfin [2] Industry Challenges - The iBuying sector faced significant risks, highlighted by Zillow's exit from the market due to misjudgments in home price growth [2] - Following the Federal Reserve's interest rate hikes in 2022, Opendoor reported a 42% loss on transactions in August, leading to a conservative acquisition strategy and a sharp decline in home purchases [3] Recent Market Activity - The recent surge in meme stocks has seen Opendoor's stock price rise significantly, with trading volume reaching approximately 1 billion shares, over 780% of its three-month average [7] - Historical trends indicate that meme stocks often utilize "at-the-market" (ATM) stock issuance for financing, and Opendoor has the potential to issue up to $200 million in stock [7] - Market observers express skepticism about whether investors truly understand Opendoor's business model or are merely driven by fear of missing out (FOMO) [7]