Opendoor Stock Surges on Surprise Jump in Home Sales
A 2% rise in July's existing-home sales data fuels investor optimism for the real estate platform, sending shares up over 11%.
Shares of Opendoor Technologies Inc. (OPEN) rallied more than 11% on Thursday, as investors cheered a surprise increase in U.S. existing-home sales, signaling a potential bright spot in a housing market that has faced significant headwinds.
The surge in stock price was triggered by a report from the National Association of Realtors (NAR), which revealed that sales of previously owned homes rose 2% in July from the month prior. The increase brought the seasonally adjusted annual rate to 4.01 million units, a development seen as a bullish indicator for Opendoor, whose platform facilitates the buying and selling of residential properties. Trading volume was heavy, running at 2.5 times the daily average.
The positive housing data sparked a significant intraday rally for the stock, which was up by as much as 15.2% in morning trading before settling at a 9.6% gain by the afternoon, according to market reports. The NAR data also showed a 0.8% year-over-year increase in existing home sales, with the median price inching up 0.2% to $422,000.
The rally extends a period of massive gains for the company, which has seen its stock climb 374% over the last three months, pushing its market capitalization to approximately $2.6 billion. The dramatic rise has sparked debate among market observers. While some have attributed the gains to "meme stock" dynamics, financial podcast host Anthony Pompliano recently suggested the surge reflects the growing power of retail investors acting as a "decentralized hedge fund" to support their top investment ideas. Regardless of the label, continued support from retail traders is seen as a key factor in the stock's near-term performance.