Opendoor Technologies (OPEN 1.25%) stock is in the green in Friday's trading. The company's share price was up 3.3% as of 2:30 p.m. ET and had been up as much as 10.2% earlier in the daily session.
Despite the absence of any big, company-specific news, Opendoor stock opened today's trading with huge gains. While the stock has given up most of the rally it saw early in the session, it's still up 417% across this year's trading as of this writing.
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Opendoor rises amid mixed market sentiment
Despite mixed movement for the broader market today, Opendoor stock is managing to post solid gains. Even though the Nasdaq Composite was down 0.4% as of 2:30 p.m. ET, the S&P 500 was up 0.1% at the same point in the day's trading. While this setup for the broader market might normally suggest that speculative meme stocks would see some pullbacks, Opendoor and some other speculative meme stocks are still seeing bullish momentum.
What's next for Opendoor?
Opendoor is in the early stages of a transitional pivot that will see the company significantly trimming its employee headcount and devoting more resources to improving efficiency through artificial intelligence (AI). The strategy has the potential to significantly improve the company's margins and pave a possible pathway to profitability, but the stock continues to look like a risky play on the heels of the incredible valuation gains it's registered this year.
If Opendoor's turnaround strategy proves to be effective and coincides with big improvements for user engagement across its iBuyer real estate platform, the stock could see big gains above current levels. On the other hand, there are a lot of moving pieces involved in the company's comeback strategy -- and the stock continues to look very risky.
