Why Opendoor Technologies Stock Is Skyrocketing Today
Opendoor Technologies' stock surged 8.9% on Friday, driven by meme stock momentum and a weaker-than-expected U.S. jobs report, which showed only 22,000 jobs added in August versus the anticipated 75,000. This weak report increases the likelihood of an interest rate cut by the Federal Reserve, potentially allowing Opendoor to refinance its debt at lower rates. The stock has risen approximately 306% year-to-date, fueled by speculative trading and excitement over new AI tools, although it remains a high-risk investment.
Opendoor Technologies (OPEN 7.72%) stock is seeing another surge of strong gains Friday. The company's share price was up 8.9% as of 12:30 p.m. ET and had been up as much as 13.6% earlier in the session.
Opendoor stock is rocketing higher today thanks to meme stock momentum and the latest U.S. jobs report. While the jobs report came in significantly weaker than anticipated, this actually looks like a positive catalyst for the company's valuation.
Image source: Getty Images.
Opendoor stock bounds higher on weak jobs report
With the August jobs report it published this morning, the Bureau of Labor Statistics showed that the U.S. economy added 22,000 non-farm jobs last month. For comparison, the average economist forecast had called for 75,000 jobs to be added in the month.
The weak jobs report increases the likelihood that the Federal Reserve will issue an interest rate cut when it meets on Sept. 16 and 17. That's good news for Opendoor on multiple fronts.
For starters, lower rates could allow Opendoor to refinance its debt at more favorable interest levels. While the Fed's benchmark rate doesn't establish the interest rates for mortgages, these rates tend to move in concert. Lower interest rates also tend to create positive valuation catalysts for stocks at large -- and speculative stocks often see outsized benefits.
What's next for Opendoor?
Opendoor stock has enjoyed a massive rally in 2025, and its share price is now up roughly 306% year to date. While some of the stock's gains are connected to excitement surrounding new artificial intelligence (AI) tools and a transition in the CEO role, much of the rally appears to have been spurred by speculative meme stock trading.
Investors are hoping that Opendoor could be in the early stages of a Carvana-like turnaround that delivers even bigger returns for shareholders. While it's possible that Opendoor could keep rocketing higher, investors should move forward with the understanding that the stock is a high-risk bet.
