Offerpad enters meme stock territory as shares surge
The iBuyer’s shares jumped over 85% on Aug. 28 — just a few weeks after Opendoor avoided delisting with some help from activist investors.
Offerpad appears to be joining Opendoor on the meme stock wave, with Offerpad shares jumping more than 85% on Aug. 28 even without any major announcements from the company.
The day ended with shares at $6.23, a nearly $3 increase from the start of the session. The sudden stock price surge occurred more than four months after the New York Stock Exchange informed the company that it was in danger of being delisted — a warning that fellow iBuyer Opendoor also received from Nasdaq in May.
But now, Offerpad's shares have begun trading higher than those of its competitor, with Opendoor shares ending the day at $4.27.
An Offerpad spokesperson confirmed that no major company announcements were made on Aug. 28 and told Real Estate News that Offerpad does not comment on daily stock price movements.
The next day, Offerpad's stock dropped significantly, showing the volatility that comes with potential meme stocks. Late in the Aug. 29 market trading session, the stock was down around 20% from one day earlier. Opendoor's shares were trading about 4% higher, even though the overall market was down.
Entering the meme stock race: The Offerpad stock price rally began a few weeks after Opendoor experienced its own surge as a meme stock. At the time, Opendoor was considering a reverse stock split, which could have saved it from being delisted. That move ultimately wasn't necessary, as Opendoor received confirmation from Nasdaq that it was back in compliance by late July.
In Opendoor's case, the stock rally driven by activist investors also led to calls for the company's CEO, Carrie Wheeler, to step down. Wheeler resigned on Aug. 15 — and in the wake of her departure, Opendoor President Shrisha Radhakrishna announced a stock move of his own.
"We're all in on the long-term opportunity at $OPEN," Radhakrishna said in an Aug. 28 post on X. "Actions speak louder than words: I'm personally buying more stock, and all members of our executive team have canceled their 10b5-1 selling plans."
Ready to rebound? While announcing Offerpad's second quarter earnings earlier this month, CEO Brian Bair said the company was "ready to accelerate as market activity returns." The spring quarter was a sluggish one for the iBuyer, which saw revenue fall 36% year-over-year, continuing a series of quarterly declines.