Shares of Opendoor Technologies Inc (OPEN) tumbled 6.25% in a volatile trading session on Tuesday, July 22, 2025, marking a sharp reversal from its recent meteoric rise. The stock, which had surged over 300% in the past month fueled by retail investor enthusiasm, fell victim to profit-taking and renewed concerns about the company's financial health.

The day's trading was characterized by extreme volatility, with Opendoor's stock triggering a temporary trading halt midday due to circuit breakers. Opening at $3.89, the shares ultimately closed at $2.88, representing a 10.75% decline from the previous day's close. Trading volume was exceptionally high, with approximately 1.05 billion shares changing hands – more than seven times the average daily volume.

Opendoor's recent rally had transformed it into the latest "meme stock," drawing comparisons to the retail-driven frenzies seen in stocks like GameStop and AMC Entertainment in recent years. However, as the excitement waned, investors appeared to refocus on the company's underlying financial challenges. Opendoor, which operates an online platform for buying and selling homes, has struggled with profitability and faces headwinds from a cooling real estate market.

Analysts have pointed out that despite the recent stock price surge, Opendoor's fundamental business model remains challenging. The company has reported consistent losses and has seen a significant drop in revenue from its peak in 2022. As the initial euphoria of the meme stock rally subsides, these fundamental issues seem to be weighing heavily on investor sentiment, contributing to today's selloff.