Why opendoor technology shares have appeared today

Shares of Opendoor technologies (Nasdaq: Open) They had risen again today when the Meme-Stock Rückwind, who has promoted online shares in the past few weeks in recent weeks, to gain strength today, even though there were no company-specific news on the share. The idea that OpenDoor could be the next Carvana Seems Steam online in social media RedditAnd the trading volume in the share has increased.

From 1:59 p.m. ET, the stock rose by 35.1%.

Opendoor has developed remarkably at short notice because the stock has almost tripled in the past few weeks.

OPENDOOR was historically volatile and had fallen at a price of less than 1 US dollar in Penny stock area, so that some fluctuations in the share price are understandable, but now it seems that the dynamics of a snowball group of retail investors are driving the share higher.

A contribution about Redits Wallstreetbets in May seems to have planted the seed for the latest rally. In a contribution entitled “Opendoor is the next Carvana”, which now contains more than 1,000 comments, a user said that he had bet $ 155,000 for OpenDoor and set an argument for relaxation with a change in the business model and the short-term effects of hedge fund at the end of the second quarter.

A short squeezing value may also have contributed to refueling the stock gains today, since 24% of the swimmer was sold briefly in mid-June, and today the stock is an unusually high volume with more than 219 million shares that were traded from 2:30 p.m. ET than in every session last year and over the 90-day average of 84.8 million.

In particular, the recent profits had nothing to do with something that is going on with the business.

Opendoor won yesterday, even when the CPI report (June Consumer Price Index) made it less likely that the Federal Reserve lowers interest rates. At this point, the share seems to have decided on the basics of the business, which is generally a bad sign in the long term.

While impulse and Meme-Stock mania could bring OpenDoor higher, long-term investors are better off to sit out.

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