Opendoor Technologies Inc (OPEN) saw its stock price plummet by 17.36% in pre-market trading on Wednesday, marking a significant reversal from its recent meme stock-fueled rally. The sharp decline comes as investor enthusiasm wanes and market participants refocus on the company's underlying fundamentals.

The pre-market drop follows a volatile Tuesday session where Opendoor's stock already tumbled 6.25%, closing at $2.88 after opening at $3.89. Trading volume on Tuesday soared to approximately 1.05 billion shares, more than seven times the average daily volume, indicating intense selling pressure. This sudden reversal is particularly notable given the stock's meteoric rise of over 300% in the past month, which was largely driven by retail investor enthusiasm as part of a broader meme stock phenomenon.

As the initial excitement subsides, investors appear to be reassessing Opendoor's financial challenges. The online real estate platform has been struggling with profitability and faces headwinds from a cooling real estate market. Analysts point out that despite the recent stock price surge, Opendoor's fundamental business model remains challenging, with the company reporting consistent losses and experiencing a significant drop in revenue from its peak in 2022. This renewed focus on the company's financial health and the broader market conditions seems to be driving the current sell-off, as traders who benefited from the recent rally move to lock in their gains.