Latest news with #OpendoorTechnologies
Bloomberg
9 hours ago
- Business
- Bloomberg
Opendoor's Wild Swings Spotlight New Meme-Stock Trading Craze
Opendoor Technologies Inc. was a poster child for the froth in special purpose acquisition companies when it went public in 2020, backed by so-called SPAC King Chamath Palihapitiya. These days, after a blistering rally powered by retail traders that cooled Tuesday, some are wondering if the tech-powered home flipper is an emblem of the latest meme-stock craze.
The Independent
11 hours ago
- Business
- The Independent
Investors breathe life into new batch of meme stocks as Kohl's, Opendoor Technologies surge
As the stock market pushes into record territory and bargains become harder to find, investors are once again turning to some of Wall Street 's beaten down companies in hopes of a quick score. The latest so-called meme stocks are the department store Kohl's, which has surged this week, and the online-based real estate company Opendoor Technologies, which has skyrocketed this month. Both companies have been struggling in their respective sectors. Wall Street defines a meme stock as a stock that gains significant popularity and trading volume, primarily driven by social media hype and online communities, rather than the company's fundamental financial performance. Think GameStop and AMC Entertainment in 2021, and a few subsequent instances. Often, meme stocks are initially the target of 'short sellers,' or investors betting against the stock. If other investors start buying the shares and boost the price, that could prompt the people betting against the stock to buy more shares to cushion their own losses. Kohl's Kohl's, which operates 1,600 stores across the country, has risen almost 50% this week as of midday Tuesday. It is wrestling with a number of challenges including a revolving door of CEOs and weak sales. In May, it announced it had terminated its new CEO Ashley Buchanan after an investigation determined that he directed the retailer to engage in vendor transactions that involved undisclosed conflicts of interest. Kohl's named Chairman Michael Bender as interim CEO as it searches for a replacement. Buchanan's appointment marked the third CEO for Kohl's in three years as the department store struggles to reverse sluggish sales. Its middle income shoppers have pulled back on discretionary spending in the face of still-high prices for necessities. It's also faced stiff competition from Walmart and Amazon, which have been improving their fashion offerings at affordable prices. Now, like many retailers, it's facing higher costs from President Donald Trump's tariffs. Opendoor Technologies Opendoor shares are up more than 40% this week after nearly tripling last week. Overall, they are up more than fivefold in July, trading at $2.81 per share Tuesday afternoon. That's still far below their peak of $35.88 in early 2021. The stock's recent gains come as hedge fund manager Eric Jackson touts the stock on X, formerly known as Twitter. On July 14, he said his hedge fund, EMJ Capital, took a position in Opendoor and expects growth over the next few years. The real estate services company, which also buys and flips homes, has yet to notch an annual profit. Analysts polled by FactSet expect it to continue posting losses in 2025 and 2026. The company faces a tough housing market. Soaring interest rates and a low supply of homes on the market have made it difficult for homebuyers. Those same factors have also made it less likely for current homeowners to sell their homes, especially those with lower interest rates. Meme stock history The original meme stock is video game retailer GameStop. In 2021, the company was struggling to survive amid the switch from discs to digital downloads and major investors were betting against the company. Investor Keith Gill, better known as 'Roaring Kitty,' rallied other investors to join him in buying up thousands of GameStop shares, changing the trajectory of the stock. GameStop had been trading under $5 heading into 2021. The stock was trading around $23 as of Tuesday. The initial meme stock craze eventually fizzled out. But the frenzy occasionally reignites, as seen the past few years with sudden gains for BlackBerry, Bed, Bath & Beyond, and Chewy. What are the risks of joining in? Investors who buy now are betting that the momentum will continue, but it can shift suddenly. It took just four weeks in 2021 for GameStop's stock to go from less than $5 to more than $120. But it has yet to touch that price again. Blackberry quickly jumped from less than $7 to nearly $30 in early 2021, but the gains were shaky and trimmed back within a year. It is now trading at about $4. ___ AP Business Writer Anne D'Innocenzio contributed to this report.
Bloomberg
12 hours ago
- Business
- Bloomberg
The Opendoor Meme Frenzy Isn't the Next GameStop
Opendoor Technologies Inc., a purveyor of residential real estate, has sextupled thus far in July with little news to justify the surge. Investors left the company for dead a few years ago when the housing market froze up, and Wall Street was starting to forget that it even existed. The company received a Nasdaq delisting notice because its stock price had been hovering below the minimum-price requirement of $1. Then a few weeks ago, the stock started to perk up, and an Opendoor bull named Eric Jackson started attracting attention on social media. Now, it has a market cap of $2.3 billion, and people are asking themselves if it's indicative of froth in the broader US equity market. I doubt it.
Bloomberg
12 hours ago
- Business
- Bloomberg
Meme Stock Fever Is Spreading Like It's 2021 With Kohl's Soaring
By and Carmen Reinicke Save Stocks are at all-time highs. Chatter on WallStreetBets is surging. Retail traders are flooding into low-priced shares. It's not 2021, and the shares of the moment aren't GameStop Corp., AMC Entertainment Holdings Inc. or the now-bankrupt Bed Bath & Beyond. In 2025's meme stock mania, the companies du jour are Opendoor Technologies Inc. and Kohl's Corp.
Bloomberg
15 hours ago
- Business
- Bloomberg
Stock Movers: Circle Internet Group, Opendoor Technologies, Philip Morris
On this episode of Stock Movers: Circle Internet Group (CRCL) shares drop after the stablecoin issuer was downgraded to sell from neutral at Compass Point Research & Trading LLC, as it sees more competition for Circle now that the US stablecoin bill has passed. Opendoor Technologies (OPEN) shares surge. It extended its rally from last week, as investors continued to pile into the stock that has found a sudden fandom among retail traders and social-media platforms. Philip Morris (PM) shares fell after Zyn nicotine pouches shipments accelerated by less than analysts had expected. Citi analyst Simon Hales said "Underlying Zyn consumer off-take trends remain strong" but the volume miss is likely to weigh on the shares.
