It looked like the meme stock craze that sent AMC and GameStop stocks to the stratosphere during the pandemic was over, but the retail investors have returned with a vengeance.
Opendoor Technologies (OPEN 2.65%) stock is their latest target, and after hitting a dangerous low of $0.51 per share in June, it has skyrocketed nearly 1,500%.
Even though the hype started through a social media campaign, the company has made some important changes, and it's sustaining the momentum.
Image source: Getty Images.
New CEO, new vision
Opendoor has had a rough time since interest rates went up, taking mortgage rates with them. Fewer home buyers are looking for a new place, leaving fewer homes for sale. Not a great recipe for growth for a company whose business is buying and reselling homes, and Opendoor has been losing money.
Retail investor dissatisfaction with the current state of affairs led to a CEO switch, and the market is excited about Shopify veteran Kaz Nejatian. He outlined a strategic growth plan in the third-quarter earnings report, and if he can pull it off, there's a chance that Opendoor can make healthy progress, even though the real estate industry is still facing strong pressure.
NASDAQ: OPEN
Key Data Points
Investors who bought Opendoor stock last year could not have foreseen these developments, but they're benefiting from there. The stock is up 364% over the past year, and if you'd have invested $100 a year ago, you'd have $463 today.
