Opendoor Technologies (OPEN) was trading at $0.51 per share on June 25 and skyrocketed to $10.52 on September 11. This is one of the most puzzling but fascinating phenomena in modern markets. When a stock like Opendoor (OPEN) suddenly skyrockets 2,000% in a short period of time (often days or weeks), it is rarely due to fundamentals alone. These explosive moves typically reflect market structure dynamics, speculative behavior, and technical catalysts.
Many sub-$1 or low float stocks are the target of social media and momentum traders when there is a “topic of the week.” A few viral posts on X/Reddit or a rumor can generate millions in day trader volume. Since liquidity is tight, the price rises enormously with relatively little real capital. Retail and algorithmic traders typically purchase short-term call options. Market makers who sell those call options must hedge by buying the underlying stock as the price rises (to stay “delta neutral”). That hedge buying creates a feedback loop: As stocks rise, market makers must buy more, pushing them up even further. This “gamma compression” dynamic was behind moves in names like GME, AMC and recently OPEN.
This week’s meme stock is Beyond Meat, Inc. (BYND). Beyond Meat stock closed at $0.52 per share on October 16, less than a week ago. Right now, BYND shares are changing hands at $6. A 1200% profit. BYND stock volume has already exceeded $4 billion in the first 30 minutes of trading. This means that BYND’s meme-sharing frenzy is even bigger than OPEN’s frenzy. In reality, retail traders are probably dumping their OPEN shares and buying BYND today.
If Beyond Meat, Inc. (BYND) follows OPEN’s price trajectory, its shares will begin trading above $10 in the coming days and weeks. OPEN took more than 2 months to generate a 2000% profit. BYND is on track to achieve the same madness in a shorter period of time. George Soros famously said “When I see a bubble forming, I rush to buy, adding more fuel to the fire. that’s not irrational“. So, I’m going to do the same thing right after I hit the publish button. Buy shares of Beyond Meat, Inc. (BYND) and sell them to another player who knows that they should not invest in a company that is on the verge of bankruptcy.
BYND is not on our list The 30 Most Popular Stocks Among Hedge Funds. BYND may be a great stock to get an adrenaline boost, but it is not a good long-term investment. We believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.