Opendoor Stock Surges 200% Amid Meme Rally, Bankruptcy Risks Persist

Opendoor Technologies (OPEN) has seen a dramatic surge in its stock price, nearly doubling in recent weeks due to a meme stock rally and renewed retail investor interest fueled by social media and a bullish thesis from activist investor Eric Jackson. Jackson's optimistic outlook, comparing Opendoor to a potential '100-bagger' like Carvana, has driven speculative buying and high trading volumes, especially on platforms like Reddit and StockTwits. Despite the momentum, Opendoor faces significant financial challenges, including a low Altman Z-Score indicating distress risk, potential financial manipulation signals, declining revenue per share, and ongoing losses with no annual profit reported. The company's iBuyer business model, which uses technology to buy and resell homes, has struggled amid falling revenues and the exit of competitors like Zillow and Redfin, but Jackson argues it now faces less competition and could capitalize on market tailwinds. While the stock's recent price appreciation excites traders, fundamental analysis suggests caution due to high debt levels, negative cash flows, and valuation concerns. The rally underscores the tension between retail-driven hype and Opendoor's underlying operational and financial difficulties.