Not A Meme Stock?

Opendoor Technologies, Inc. OPEN are volatile Monday, coming off huge gains last week that saw the stock rise more than 50%. Despite the massive sentiment driven moves, new chairman Keith Rabois insists that Opendoor is not a meme stock. 

Not A Meme Stock? 

In a CNBC interview on Friday, Rabois said that Opendoor is not a meme stock and pushed back on notions that its recent surge is purely sentiment-driven. 

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Retail investors are expressing a clear view that Opendoor deserves more investment because of its unique role in reshaping real estate transactions, Rabois said. 

“Markets are designed to allocate capital. Consumers are voting with their feet to say we want more capital being allocated to Opendoor. That’s a good thing. That’s how society should work,” the chairman said. 

Rabois cheered the involvement of individual investors and their ability to identify the fundamentals and long-term potential of Opendoor as what will drive the company’s future success. 

“I think the whole retail movement is misunderstood. It’s better when consumers say, I want more of this and less of that. We don’t need professionals. We need consumers saying, this is what is better for society, and I want to invest more capital,” Rabois said. 

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Other Voices

Other prominent voices have also said that Opendoor is not a meme stock. 

Both Opendoor promoter Eric Jackson and crypto investor Anthony Pompliano have rejected the idea that Opendoor is “just a meme stock” and rather frame the stock’s story as misunderstood. 

They recognize risk—it will take time and execution to meet projections—but they stress that potential is a more accurate driver than sentiment.

It seems Rabois agrees and views Opendoor as a potential juggernaut with significant upside if it executes well.

OPEN Price Action: Opendoor Technologies shares were up 3.66% at $9.40 at the time of publication on Monday. The stock is approaching its 52-week high of $10.70, according to Benzinga Pro data.

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