Opendoor Technologies (OPEN) fell 94% from its 2021 peak due to rising interest rates and a frozen housing market. Hedge fund manager Eric Jackson’s endorsement in July sparked a meme stock surge, driving OPEN stock up by triple digits. Despite the surge, Opendoor remains a cash-burning business with limited growth.

Opendoor, a digital platform for real estate transactions, went public in 2020 with a market cap of $1.7 billion. Facing delisting in May, the company proposed a reverse stock split to boost its share price. Investor enthusiasm has seen OPEN shares soar 267% in the past month, outpacing the S&P 500.

Opendoor reported strong Q1 2025 revenue of $1.15 billion, beating estimates. While revenue looks promising, investors focus on profitability. Opendoor reduced its adjusted net loss and EBITDA loss, showing progress in cost-cutting. The company purchased more homes in the quarter, reflecting operational momentum.

With $559 million in cash, Opendoor has financial flexibility. Q2 earnings are expected to show revenue between $1.45 billion and $1.53 billion, with a projected net loss per share of $0.04. Analysts predict losses will decrease by 55% in fiscal 2025, signaling a path to stability.

Analysts have a “Hold” rating on OPEN stock ahead of Q2 earnings. Of the 10 analysts covering the stock, one has a “Strong Buy,” seven have a “Hold,” one suggests a “Moderate Sell,” and another a “Strong Sell.” The stock currently trades at a premium to the average analyst price target of $1.14.

Read more at Yahoo Finance: Dear Opendoor Stock Fans, Mark Your Calendars for August 5