One Tweet Predicted a 16,000% Gain for This 50-Cent Stock. It's Already Up 300% - Is the Meme Stock Frenzy Back?
Wall Street is experiencing a powerful sense of déjà vu. The ghost of the 2021 meme stock mania has returned, and it's sending a new batch of unlikely stocks on a wild ride. Retail investors are once again piling into heavily-shorted, struggling companies, sparking explosive rallies in names you might not expect, from department store Kohl's to donut maker Krispy Kreme and action camera maker GoPro.
But this time, the fuse wasn't lit in the chaotic forums of Reddit. The catalyst for this latest speculative firestorm appears to be a single hedge fund manager and a few posts on X.com, proving that market-moving hype can come from anywhere.
The spotlight is shining brightest on Opendoor Technologies, an online real estate platform that had been left for dead by the market. Last week, Eric Jackson, a portfolio manager at EMJ Capital, announced that his fund had taken a significant long position in the company. He didn't just express mild optimism; he made a jaw-dropping prediction, projecting Opendoor's stock could eventually hit an astonishing $82 per share.
For a stock that hit a record low of just 50 cents last month, that forecast was pure rocket fuel. Traders and retail investors pounced. The result? Opendoor's shares have skyrocketed an incredible 300% so far this month, a dramatic reversal after shedding more than 90% of their value from their 2021 peak.
This explosive move in Opendoor has created a ripple effect, drawing attention to other companies that fit the classic "meme stock" profile: high short interest and a struggling business model. Traders, emboldened by the Opendoor surge, have also targeted the other firms, betting they can squeeze short-sellers and ignite similar rallies.
It’s a clear echo of the David vs. Goliath narrative that defined the GameStop saga four years ago, but with a new twist. The question on everyone's mind now is whether this is a fleeting moment or the beginning of a new chapter. As a hedge fund manager's tweet proves its power to move markets, Wall Street is watching closely to see if this new meme rally has the legs to run, or if it will burn out as quickly as it began.
