In July, Opendoor Technologies (OPEN) saw its share price soar by an extraordinary 245%. That rapid climb raised the question: would the company’s Q2 2025 earnings release, announced on Tuesday, prolong the surge or bring it to a close?

Although the final verdict isn’t in, the latest results offer several signals about the stock’s possible direction.

The spectacular upswing happened almost entirely within one week in mid-July. The spark came on July 14 when hedge fund manager Eric Jackson revealed that his firm, EMJ Capital, had invested in Opendoor (OPEN), saying he believed it could be a 100-bagger over the next few years. Shares exploded upward, reaching a 265% gain by July 21 at $3.20 per share. From that high point, however, the stock slid 42.7% during the rest of the month.

This price action propelled Opendoor (OPEN) into the spotlight among the so-called “DORK” momentum stocks. Even CEO Carrie Wheeler addressed the sudden attention on the company during the earnings call: I want to acknowledge the great deal of interest in Opendoor (OPEN) lately, and that we're grateful for it. She added, This increased visibility is an opportunity to tell our story to a broader audience. We intend to make the most of it.

Financially, the second quarter was a mixed story. Opendoor (OPEN) reported $1.6 billion in revenue from selling 4,299 homes — a 5% year-over-year increase — and trimmed its net loss from $92 million in Q2 2024 to $29 million in Q2 2025. Importantly, the company posted positive adjusted EBITDA of $23 million, marking its first quarter of adjusted EBITDA profitability in three years.

However, this apparent milestone may not signal a lasting turnaround. The second quarter is typically the strongest period for home sales, and Opendoor (OPEN) had increased marketing investments in previous quarters to drive awareness. While resale volumes rose, acquisitions — the number of homes purchased for future resale — were down 63% from last year, a figure that suggests leaner revenues ahead.

Looking forward, the company’s forecast was sobering. For Q3, management projected revenue between $800 million and $875 million, roughly half of Q2’s total, with only about 1,200 homes acquired versus 1,757 in the prior quarter. They also expect to swing back to an adjusted EBITDA loss of $21 million to $28 million, calling Q2’s profitability a one-time event.

Adding to the caution, Opendoor (OPEN) noted that the housing market has further deteriorated over the course of the last quarter and highlighted a challenging inventory mix of older, lower-margin homes. The company anticipates Q4 revenue will fall at a rate similar to Q3’s sequential drop, implying that Q4 could be severely diminished — potentially to zero.

Unsurprisingly, the stock has fallen over 20% since the earnings announcement. Yet, even after the pullback, shares remain more than 200% higher than at the start of July.

To sustain the rally, Opendoor (OPEN) would need another major catalyst — either an unexpected corporate development or another high-profile endorsement like Jackson’s. But with the share price already having surged 200% from Jackson’s entry point, the “undervalued gem” narrative may have lost its potency.

As a meme-stock, Opendoor’s (OPEN) price remains vulnerable to abrupt swings. While a short squeeze or sudden hype could spark another spike, the evidence points to July’s rally being more of a short-lived phenomenon than the start of a sustained uptrend.