Key Points Opendoor has become the latest "meme stock," with its rally heavily influenced by retail investor enthusiasm.Despite the recent positive momentum in share price, the company faces substantial financial challenges,

Opendoor (OPEN) has become the latest meme stock phenomenon, surging 350% in the past month and 100% since hedge fund manager Eric Jackson began promoting it on social media as a potential “100-bagger.

A Meteoric Surge Ignites Hype Opendoor Technologies (NASDAQ:OPEN) is on fire, skyrocketing 75% in midday trading Monday, after a jaw-dropping 188% gain last week, lifting its stock to $3.94 per share.

No one knows where Opendoor stock is headed in the short term, though volatility seems guaranteed. Volatility does create opportunity, but it also increases the risk for catastrophic losses as existing shareholders have experienced with the stock down more than 20% on July 23.

The ticker $OPEN has been heavily cited on WallStreetBets, the online forum behind the infamous GameStop mania in 2021.

Penny stock iBuyer platform Opendoor saw its stock more than double on Monday, before giving up most of these gains in afternoon trading.

A flawed business model should keep investors away from this stock.