Opendoor Set To Extend Rally? Why Retail Traders Are Buzzing Again After 'Meme Stock' Darling's 50% Weekly Surge
Synopsis
Hedge fund manager Eric Jackson leads push for governance changes amid ‘extremely bullish’ retail sentiment.
Opendoor Technologies was at the top of the trending list on Stocktwits late Sunday, after a strong rally last week amid an investor push to reappoint co-founder Keith Rabois to the company's board.
Shares of meme stock darling rallied 50% in the five sessions through Friday, hitting a three-year high on the last trading day of the week.
A "Bring Back Rabois" campaign is gaining momentum on social media, led by Eric Jackson of EMJ Capital. The hedge fund chief has been pushing for changes at the online real estate company since July, and claims to have taken a large position in the company.
Under pressure from Jackson and high retail interest, Opendoor saw the departure of its CEO, Carrie Wheeler, and cancelled a planned reverse stock split. Meanwhile, the company in August said it was pivoting to a new model that focuses on working with real estate agents through AI tools, instead of buying and selling homes itself.
Over the past week, Jackson intensified pressure to bring back Rabois and have him formally involved in the CEO search, threatening that a delay might lead to a shareholder lawsuit.
Meanwhile, the short interest in the stock has climbed to over 21%, the highest to date, according to Koyfin data. However, some retail investors are calling the setup a potential short squeeze.
"$OPEN is a textbook squeeze play. The float rotated on Friday with 570M shares traded vs 629M float... The price is coiling under [the] 6.87 level and if volume rips through tomorrow, then 7.5–8 is possible," one user posted on Stocktwits.
The retail sentiment shifted for the stock was 'extremely bullish' as of late Sunday, compared to 'bullish' on Friday.
Investors broadly note that a potential cut in interest rates, which seems likely, and the new CEO appointment are catalysts for the stock. OPEN shares are already up about 315% this year.
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