Opendoor stock leaps amid Nasdaq delisting concerns
After sitting below $1 for months, the iBuyer’s stock was up as much as 441% in the past week. The company is also seeking approval for a reverse stock split.
Wall Street is closely watching Opendoor's sudden stock price surge — a shift that could be telling as shareholders consider whether to back a proposed reverse stock split.
While the iBuyer's stock price had hovered below $1 since mid-April, it began ticking up in the last few days with help from a hedge fund manager and social media users who joined in efforts to drive up the price. As of 3pm ET on July 21, Opendoor's stock price had dropped to around $3.47 after peaking at nearly $5 just 15 minutes prior.
Why it matters: Opendoor received a potential delisting notice from Nasdaq on May 28 after its stock price failed to reach or exceed $1 per share for 30 consecutive business days. To remain on the index, Opendoor's stock price must hit at least $1 for 10 consecutive business days — a goal that now appears to be in reach since the stock passed that threshold on July 15.
What changed: EMJ Capital Founder Eric Jackson announced last week that his company believes Opendoor stock has the potential for a resurgence, according to CNBC. Jackson compared Opendoor to Carvana, a company that lost significant value in 2022 before it rallied in 2023.
In Opendoor's case, "They have no national competitors in iBuying anymore" now that Zillow and Redfin have left the iBuying space, Jackson noted in a July 14 thread on X. He urged others to invest and predicted that the stock price will hit $82 "in a few years."
What happens next: Days after receiving its risk of delisting notice, Opendoor announced that it was requesting shareholder approval to move forward on a reverse stock split — a move that would consolidate shares and thus drive up the company's stock price. At the time of the announcement, Opendoor's stock price was at $0.68.
That shareholder meeting is slated to occur on July 28. One week later, Opendoor is expected to provide a wider view of its financial health as the company reports its second quarter earnings on August 5.
What about Offerpad? The other big player in iBuying has seen a similar stock jump. Following two months of shares sitting in the one-dollar range, Offerpad's stock began climbing in mid-July, more than doubling between July 20 and 21 as of mid-afternoon trading, then — like Opendoor's — falling late in the day.
Offerpad also faced delisting in 2022, but the company managed to revive its stock in early 2023 before seeing it slip below $1 again in recent months.