Opendoor Stock Struggles to Hold Year’s Gains As Meme Rally Runs Out of Steam

The year’s standout meme stock is losing momentum, down 45% from its September peak.

• Opendoor stock has declined 25% in December, and is heading for its third month in the red.
• The management has kept a strong pace of product rollout and strategic updates.
• The Stocktwits sentiment for Opendoor has languished mainly in the ‘bearish’ and ‘extremely bearish’ zones in the past two months.

Investors in Opendoor Technologies, the year’s standout meme stock, appear to be growing impatient amid a recent sharp pullback in the shares. The stock is down about 25% this month and is heading for a finish in the red territory for the third month in a row.

Although the company has kept up a strong pace of product announcements and strategic updates, OPEN's incredible gains are eroding, bit by bit, with investors wondering whether to stay invested or cash out.

“$OPEN I'm wondering if I should throw more money at this but I don't want to keep catching a falling knife. It needs to show me some strength and confirmation first,” said a Stocktwits user, summarising the community mood on the platform. 

Opendoor recently appointed Lucas Matheson, the former CEO of Coinbase Canada, as president, and acquired mortgage services platform HomeBuyer.com to beef up its lending business. Earlier in November, the company announced a substantial push into artificial intelligence (AI), with plans to roll out over a dozen AI-driven products. 

OPEN Loses Momentum

Those moves have failed to lift the stock, with the Stocktwits sentiment for OPEN hovering in the ‘bearish’ and ‘extremely bearish’ zones for the most part in the past two months. Comments on the platform were sharply divided: bulls are optimistic that the new management’s AI-driven strategy and targeted profitability by 2026 will drive gains, while the bears dismiss the stock as overvalued and with a flawed business model.

“$OPEN most glaring signal I should not have ignored, 3 rate cuts since September and OPEN has lost 40% in that time frame. Speaks volumes about where this is headed,” said a user.

A less bearish user said: “$OPEN AI strategy makes sense. Execution timeline is what the market doubts.”

Short interest in the stock has declined over the past two months, falling by a greater margin than the drop in OPEN’s share price. About 11.8% shares were shorted as of the latest reading on Koyfin, down from the 22.8% peak in September.

Upcoming Triggers

Two upcoming events could drive the stock in the near term. S&P Dow Jones Indices is set to release its Case-Shiller home price indexes at 9 am ET on Tuesday; the indexes are widely watched for home price trends across major metros.

At 2 pm ET, the Federal Reserve’s minutes from its Dec. 9-10 meeting will be released, likely offering insights into the central bank's future rate moves. 

From under $1 in July, OPEN peaked at over $10 in September, surprising investors and claiming the crown as the top meme stock of 2025. Despite the recent weakness, the stock is still up 259% year-to-date.

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