Opendoor (OPEN) shares remain in focus after the digital real estate platform delayed a shareholder vote on the previously proposed reverse stock split until Aug. 27. 

The management’s decision to postpone the shareholder vote comes on the heels of a meme stock rally that pushed OPEN shares well past $1, restoring compliance with the Nasdaq’s minimum listing requirements. 

Opendoor stock rallied past $3 last week, but has since pared back some of the retail-driven gains and is now trading at about $2 only. 

Is It a Positive for Opendoor Stock?

Regaining compliance with the Nasdaq’s minimum listing requirements is a positive signal for OPEN stock primarily because it eliminates the immediate risk of delisting, which could have triggered forced selling. 

Moreover, delaying the reverse split demonstrates management’s confidence that the stock can recover organically, protecting existing shareholders from dilution. 

This perceived stability enables OPEN to focus on operational execution and capitalize on bullish momentum. 

Simply put, it serves as a breather for Opendoor shares that have long been struggling with eroding investor confidence. 

Is It a Reason to buy OPEN Shares?

While delaying the reverse stock split is a constructive development, it’s hardly an adequate reason to build a position in Opendoor stock as the company lacks strong fundamentals to warrant an investment. 

In its latest reported quarter, the online platform that streamlines buying and selling of residential properties continued to lose money and recorded a 2% year-over-year decline in revenue.  

While recent gains may tempt opportunistic investors, the underlying risks of owning OPEN shares remain substantial given it’s a penny stock and is, therefore, especially vulnerable to manipulation.

Opendoor Technologies sits in the volatile corner of the market where price swings are often driven more by hype than fundamentals. 

Wall Street Sees Massive Downside in Opendoor

Finally, investors should remain on the sidelines in Opendoor stock also because it’s not a particularly well-liked name among Wall Street analysts. 

The consensus rating on OPEN shares currently sits at “Hold” only with the mean target of $1.14 indicating potential downside of another 45% from here.