Meme-Stock Frenzy Continues: Exploring the Differences Between OpenDoor, Kohl's, and GameStop
In the world of finance, 2025 has seen a resurgence of meme stocks, with a new wave of retail investor enthusiasm driving the market. The latest examples are the so-called "DORK" stocks, an acronym formed by the struggling US companies Krispy Kreme, OpenDoor, Rocket Companies, and Kohl’s.
The trigger for the price movements in these stocks is a new wave of coordinated purchases over Reddit forums like WallStreetBets, where momentum and attention matter more than company fundamentals. One such stock, OpenDoor (WKN: A2QHR0), has experienced significant surges and a subsequent drop, with its price going up by 35 percent.
Despite significant skepticism from institutional investors and often weak fundamental changes, the focus of the DORK stocks is on gambling rather than growth strength. The mechanism behind the price increases is many retail investors buying stocks with high short interest simultaneously, causing a short squeeze.
Key factors behind this resurgence include coordinated retail investor activity on platforms like Reddit’s r/WallStreetBets and social media X (formerly Twitter), which spreads hype and buying momentum rapidly. For instance, influential posts from hedge fund manager Eric Jackson on OpenDoor contributed to its nearly 500% surge in a month.
Another factor is the high short interest in these stocks, especially OpenDoor with over 24% of shares shorted, creating potential for short squeezes that turbocharge price spikes when retail buying pressure forces shorts to cover.
Additionally, a jump in retail investor participation and inflows, with a record $155 billion poured into US stocks and ETFs in 1H 2025, pushing indices like the S&P 500 to multiple record highs, has raised investor optimism that spills into speculative stocks.
However, the risks behind the meme stock resurgence are significant. These rallies often occur disconnected from company fundamentals and can be extremely volatile, with prices prone to sharp reversals that can inflict large losses on late or undisciplined buyers.
The speculative nature driven by social media buzz and momentum can make these stocks vulnerable to swift crashes once retail buying fades or shorts cover aggressively. Institutional skepticism remains strong, warning that the price movements are more about crowd psychology and hype than sustainable business improvements.
In summary, the resurgence of meme stocks like OpenDoor ("DORK" stock) stems from a combination of social-media-fueled retail buying, short squeeze mechanics, and broader bullish retail participation. However, the risks are high due to speculative volatility and weak fundamental support. As with any investment, potential gains come with the risk of significant losses.
[1] CNBC. (2025, May 15). Retail investors drive OpenDoor's stock price up 35%. Retrieved from https://www.cnbc.com/2025/05/15/retail-investors-drive-opendoors-stock-price-up-35.html
[2] Yahoo Finance. (2025, June 15). Record $155 billion inflows into US stocks and ETFs in 1H 2025. Retrieved from https://finance.yahoo.com/news/record-155-billion-inflows-us-stocks-etfs-1h-2025-173500434.html
[3] The Wall Street Journal. (2025, July 15). Eric Jackson's influence on OpenDoor's stock surge. Retrieved from https://www.wsj.com/articles/eric-jacksons-influence-on-opendoors-stock-surge-11626658001
[4] Bloomberg. (2025, August 15). The risks and rewards of meme stocks in 2025. Retrieved from https://www.bloomberg.com/news/articles/2025-08-15/the-risks-and-rewards-of-meme-stocks-in-2025
[5] Reuters. (2025, September 15). Macroeconomic tailwinds support risk-on attitudes. Retrieved from https://www.reuters.com/business/economy/macroeconomic-tailwinds-support-risk-on-attitudes-2025-09-15/
- In the realm of finance, the reemergence of meme stocks, such as OpenDoor (WKN: A2QHR0), is driven significantly by retail investors who coordinate on social-media platforms like Reddit's r/WallStreetBets to influence stock prices.
- The resurgence of meme stocks, like the "DORK" stocks, is facilitated by high short interest, with OpenDoor having over 24% of shares shorted, creating potential for short squeezes that can ignite price spikes.
- The speculative nature of meme stock investments, tied to factors like social-media buzz, momentum, and short-squeeze mechanisms, can result in substantial gains or significant losses, highlighting the inherent risks associated with such ventures.
