Opendoor stock is being compared to AMC and GameStop, known as meme stocks, despite Opendoor’s failed promise to disrupt the real estate market. The company has experienced layoffs and its stock has been trading below $2 for much of the year. Despite this, Opendoor’s stock surged 180% in a week after a bullish post by an investor, leading to skepticism among analysts about its long-term potential.

GameStop, another meme stock, has been struggling for years due to the rise of digital downloads and online retail. The company’s stock price does not reflect its declining business prospects, with some investors buying shares to manipulate the price higher. GameStop’s future remains uncertain as it navigates a changing retail landscape.

Warren Buffett has criticized stock market investors for following trends without considering the fundamentals of a company. GameStop has some positives, like short-term leases for closing failing stores, but its lack of innovation and strategic pivot pose challenges for its future. Buffett’s words serve as a cautionary tale for those investing in volatile meme stocks like GameStop.

Analysts have a Hold consensus rating on Opendoor stock, with an average price target suggesting a 63.1% downside risk. Despite recent surges driven by social media hype and investor speculation, experts caution that Opendoor’s business model lacks long-term viability. The company’s limited upside potential raises doubts about its ability to sustain growth in a competitive market.

Read more at Yahoo Finance: Opendoor stock is another AMC or Gamestop