Shares of technology real estate company Offerpad (NYSE:OPAD) jumped 136% in the afternoon session after its connection with the "meme stock" phenomenon.

This rally appears to be a spillover from the substantial gains seen in Opendoor Technologies (OPEN), another key player in the "iBuyer" space. Retail investors, who often drive these types of rallies, are targeting stocks with high short interest and a history of volatility, such as Offerpad, leading to a substantial increase in trading volume and a subsequent price spike. This speculative trading behavior often has a domino effect, where a rally in one company's stock prompts investors to look for similar opportunities in related companies, creating a wider market trend.

After the initial pop the shares cooled down and closed the day at $3.59, up 133% from previous close.

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Offerpad’s shares are extremely volatile and have had 89 moves greater than 5% over the last year. But moves this big are rare even for Offerpad and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 14.2% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium.

Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

Offerpad is up 61.2% since the beginning of the year, but at $4.32 per share, it is still trading 14.3% below its 52-week high of $5.04 from December 2024. Investors who bought $1,000 worth of Offerpad’s shares at the IPO in December 2020 would now be looking at an investment worth $28.29.

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