Opendoor Extends Meme Rally After Cofounder Eric Wu Snaps Up $3M In Stock On Return

Eric Wu, the cofounder of Opendoor Technologies, who was reappointed to the company's board, has purchased $3 million worth of company shares, according to an exchange filing on Monday.

Wu bought 451,127 shares at $6.65 on Sept. 9 and now directly owns 1,649,884 shares of Opendoor Technologies. Shares of the company closed 4.7% higher at $9.49 on Monday, and climbed over 1% in after-hours trading.

Last week, the company appointed Shopify senior executive Kaz Nejatian as its CEO and reappointed Wu and ccofounderKeith Rabois to its board.

Rabois, now the chair of the board, recently said that he believes Opendoor is "bloated," suggesting a potential workforce reduction of up to 85%.

The management-level changes come after a push from investors led by hedge fund manager Eric Jackson. Jackson, founder of EMJ Capital, began posting bullish commentary and took a position in Opendoor in July, which retail watchers saw as a key signal and pushed the stock higher. 

Jackson renewed his bid on Monday, drawing comparisons between Opendoor and Tesla, as well as Palantir. Since early July, Opendoor's market cap has increased from $500 million to $7 billion.

On Stocktwits, the retail sentiment for the stock shifted lower to 'bullish' from 'extremely bullish,' even as message volume rose over 500%.

"$OPEN haven’t sold one share yet. Riding this to $82," said one user, referring to Jackson's forecast in July, when the stock was under $1.

OPEN shares are up 493% year-to-date.

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