Shares of Opendoor Technologies (OPEN -3.19%) were pulling back today, letting a little air out of the meme stock rally.
While there wasn't any company-specific news out on Opendoor, there were two news items that may have weighed on the already-volatile stock.
As a result, Opendoor closed down more than 12%.
Image source: Getty Images.
Opendoor pulls back
The biggest factor impacting Opendoor today may have been a post on X from hedge fund manager Eric Jackson, who started the meme stock-based rally in the stock, arguing that it was the next Carvana. Jackson announced a new 100-bagger pick, promoting Better Home & Finance Holding (BETR -5.66%), which he linked to a Shopify for mortgages.
The post sparked a rally in the small-cap stock, and trading was temporarily halted. It finished the trading session up 47%.
Jackson's prediction doesn't directly impact Opendoor, but it could have led Opendoor investors to cash in their profits to bet on Better Home & Finance. Trading volume in that stock topped 7 million, compared to a daily average of just 83,000.
Additionally, real estate brokerage Compass said it would buy Anywhere Real Estate in a deal valued at $4.2 billion. While Compass isn't a direct competitor to Opendoor, it will make the largest U.S. residential real estate broker even bigger, which could challenge Opendoor for home sales, as Opendoor is aiming to replace the traditional real estate transaction.
It's a reminder that the traditional real estate industry isn't standing still, even as the industry changes.
What's next for Opendoor?
A double-digit move isn't out of the ordinary for Opendoor these days, and it's unclear if Jackson's focus on Better Home & Finance will have an impact on Opendoor, though he is still backing the company.
Opendoor stock is now down 23% from its intraday peak last week, showing how fast things can change for a volatile meme stock.
While new management is trying to put together a turnaround plan, a sustained sell-off could be hard to recover from.
