Opendoor Technologies Inc. (OPEN) saw its stock plummet by 5.17% in intraday trading on Wednesday, marking a significant downturn for the online homebuying company. This decline comes on the heels of news that Opendoor has been included as the top holding in a newly launched meme stock ETF by Roundhill Investments.

The sharp drop is particularly notable given Opendoor's impressive performance this year, with the stock having surged approximately 480% year-to-date. The company has gained popularity among retail investors, with social media groups like the "Open Army" advocating for management changes. However, the meme stock label, often associated with volatile and speculative trading, may be causing concern among some investors.

While the exact reasons for today's decline are not explicitly stated, several factors could be at play. Some investors might be engaging in profit-taking after the stock's substantial gains this year. Additionally, there could be apprehension about the sustainability of meme stock rallies, or concerns that being labeled as a meme stock might overshadow the company's fundamental value. Opendoor CEO Kaz Nejatian's response to the ETF inclusion was notably cautious, stating, "I am not a stock analyst, so I am going to be bad at commenting on this. I build products for a living and I really like what we are building at Opendoor."