The most insane trading day for Opendoor yet, charted
Opendoor traded more than Meta in furious, frenzied trading yesterday that echoed the peak GameStop era.
The explosion of retail enthusiasm over struggling online real estate company Opendoor Technologies is propelling trading activity in the stock into the stratosphere of the most valuable, well-known companies in the world — and in many cases, well past them.
It’s hard to contextualize just how insane it is that a company that, until very recently, was a penny stock with a market cap in the hundreds of millions is now trading more than tech giant Meta.
As you would expect, trading volumes tend to correlate strongly with the market value of a stock. There are outliers, of course — Palantir is one that continues to punch above its weight — but for the most part, there’s a clear correlation between market cap and volume traded. Even in the most liquid market in the world, US equities tend to take a little over 100 days of typical trading to turn over their entire market cap.
Put another way, the average stock in the S&P 500 Index traded 0.87% of its market cap yesterday, per FactSet data. On a relative basis, Domino’s Pizza, which reported decent earnings yesterday thanks its efforts in the world of stuffed crusts, was the most active in the S&P 500 — turning over just under 7% of its market cap in Monday’s session.
Opendoor Technologies was completely off the charts, trading 298% of its closing market cap (an important distinction because it, uh, varied a lot yesterday).
That’s not too far off how much GameStop traded at the peak of its January 2021 frenzy: 316% of its market value.
