Shares of Opendoor Technologies (OPEN 1.32%) were on the move again today as the volatile meme stock jumped for the second day in a row. This time, there was real news driving the stock's gains.
Last night, Jane Street, a well-known investment firm, disclosed a passive stake in the real estate stock. That helped Opendoor finish the session up 10.3%.
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Opendoor seems to get some institutional support
Last night, Jane Street disclosed a 5.9% stake in the online home flipper, or 44 million shares in the stock. It's a passive stake, so investors shouldn't expect the firm to push for any traditional activist strategies like a sale.
Jane Street is known for quantitative proprietary trading and is considered to be one of the most profitable companies on Wall Street. It's also a market maker, so the purchase could also be a hedge against another position, such as calls it sold. The firm earned net trading revenues of $10 billion last year, making it one of the biggest market makers in the world.
While the company didn't discuss the Opendoor investment, there is upside potential for the stock after new leadership came in, including CEO Kaz Nejatian, and after it rallied up from penny stock range on meme stock interest.
What's next for Opendoor?
Given Jane Street's status, the implications of the purchase aren't entirely clear, but it does indicate interest in the stock one way or another.
We may get more details on the holding in the future, but for now, investors should expect Opendoor stock to continue to be volatile. While meme stock investors continue to have big hopes for Opendoor stock, the company's recent gains have also come without any meaningful change in fundamentals.
