Executives at publicly-traded iBuyers Opendoor and Offerpad may be able to put worries about being delisted behind them as investors continued to buy up shares in the companies at breakneck speed on Monday, extending a feeding frenzy that lifted off last week but is not backed by any recent news.
Shares in Offerpad, which in the last 12 months had traded for as little as 91 cents and as much as $5.13, were up 90 percent at one point in heavy trading Monday afternoon, and have gained more than 300 percent in the past month.
Offerpad was put on notice by the New York Stock Exchange in April that it could be delisted from the exchange because its market capitalization had dropped below $50 million.
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But recent gains have pushed the company’s market cap — the total dollar value of the company’s outstanding shares — well above $100 million.
Offerpad, which trimmed its Q1 2025 net loss to $15.1 million — down 14 percent from the final three months of 2024 — is scheduled to release second quarter results on Aug. 4.
Shares in iBuyers Opendoor (OPEN) and Offerpad (OPAD) are surging despite a lack of news from the companies. Source: Yahoo Finance.
Opendoor is a far bigger company, with a market cap that exceeded $3.5 billion Monday after the company’s price-per-share more than doubled, pushing gains in the past month to more than 800 percent. More than 1.4 billion shares in Opendoor changed hands Monday, more than 10 times the average daily volume of 108 million shares.
Opendoor had also been put on notice by the Nasdaq Stock Market in May that it faced delisting after the company’s share price dipped below the $1 minimum threshold needed to remain listed on the exchange.
Opendoor shareholders are scheduled to vote on July 28 on a reverse stock split of between 1-for-10 shares to 1-for-50 shares, “with the exact ratio within such range to be determined by the board in its discretion.”
But if Opendoor can hold on to even a portion of recent gains, a reverse stock split may no longer be required.
Neither Opendoor or Offerpad have responded to Inman’s requests for comment.
Motley Fool contributor Jeremy Bowman on Friday attributed Opendoor’s surge to “a combination of a meme stock rally, a possible short squeeze, and a thesis shared on Reddit and X.com that the company could be the next Carvana.”
EMJ Capital Founder Eric Jackson — the self-described “Carvana hedge fund guy” — has been touting Opendoor on X.
In an appearance on Anthony Pompliano’s business program on X Monday, Jackson said he thinks it could keep soaring to $82 a share — which would give Opendoor a market cap of nearly $60 billion, more than three times Zillow’s.
There is a chance Opendoor may be the next meme stock.
I spoke with @ericjackson about the stock, his thesis, and why he thinks it is going to $82 per share.$OPEN pic.twitter.com/BF3FrUtPIl
— Anthony Pompliano 🌪 (@APompliano) July 21, 2025
With no news coming from either company, recent gains in both companies’ share prices could evaporate as quickly as they materialized.
“What is Opendoor?” asked a headline on a Fast Company article Monday about “the latest meme stock.”
Much of Monday’s gains for both companies had begun to evaporate by the end of the day.
Investors in meme stocks like GameStop Corp. often end up losing much of the money they venture on speculative picks if their initial optimism isn’t backed up by fundamentals.
Opendoor posted a $392 million 2024 net loss and has racked up $3.81 billion in cumulative losses through March 31. CEO Carrie Wheeler has said the company is hoping to reach more sellers by “flipping the script” and giving them the option of listing their home with an Opendoor preferred agent with an all-cash backup plan.
On July 7, Offerpad notified investors that one of the company’s five senior credit facilities has been reduced, leaving the company with $200 million less borrowing capacity.
In the company’s last quarterly report, Offerpad disclosed that it had $1.007 billion in borrowing capacity, only $233 million of which was committed. With the reduction in the credit facility announced in July, Offerpad would still have roughly $574 million in borrowing capacity.
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