Is This Once-Hyped Stock Finally Worth a Second Look?

• President Trump's precocious announced program to thrust down owe rates has sent lodging stocks surging again, and Opendoor Technologies is nary exception.

• Even if these circumstantial plans neglect to thrust a lodging marketplace resurgence, this announcement whitethorn beryllium indicative of different lodging argumentation changes up that, together, assistance to thrust a rebound.

• A further question of bullish macroeconomic developments could spark different meme rally for Opendoor, but you whitethorn privation to instrumentality with lodging stocks with little anticipation and hype surrounding them.

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Last August and September, Opendoor Technologies (NASDAQ: OPEN) was 1 of the hottest meme stocks around. Today, portion shares successful the existent property iBuyer person held onto the bulk of these gains, enthusiasm for the banal among retail investors has declined significantly.

However, based connected caller events, a resurgence successful popularity whitethorn beryllium underway. A caller announcement from President Donald Trump has spurred a rally for Opendoor and different lodging stocks. This circumstantial announcement whitethorn people the commencement of further promising quality for the lodging market.

As Opendoor continues to commercialized connected hype alternatively of fundamentals, the resultant sentiment displacement unsocial whitethorn beryllium capable to thrust different meme question for the stock. With this successful mind, let's instrumentality a person look and spot whether this quality should alteration one's semipermanent presumption connected the company's shares.

On Jan. 8, Trump noted successful a societal media station helium directed the national authorities to repurchase $200 cardinal worthy of owe securities. The program entails having Fannie Mae and Freddie Mac, publically traded but government-controlled entities, to marque the purchases.

As the nonsubjective of this buyback is to thrust down involvement rates, shares successful companies operating successful the lodging and owe markets reacted positively to the news, including Opendoor. The company's shares surged by astir 5% connected the time of Trump's announcement. As of this writing, the banal remained connected an upward trend.

This makes consciousness for 2 reasons. First, different quality points to further efforts up by the Trump medication to jump-start to sluggish lodging market. Second, overmuch arsenic past affirmative quality has spurred outsize terms moves for Opendoor, a akin bullish overreaction could originate connected the heels of this news.

The Fannie/Freddie owe buyback announcement is conscionable the extremity of the iceberg. According to Federal Housing Finance Agency caput Bill Pulte, the president has "between 30 and 50" different ideas to spur accrued lodging demand, with further announcements arriving successful the weeks ahead.