Opendoor Technologies Inc (OPEN) saw its stock plummet 6.23% in intraday trading on Tuesday, marking a sharp reversal from its recent meme stock-driven rally. The real estate technology company, which had surged over 300% in the past month, faced a significant pullback as investors reassessed the sustainability of its rapid price appreciation.

The stock's decline comes after a period of extraordinary gains, with Opendoor shares rising as much as 121% in a single session earlier this week. The rally was fueled by retail investor enthusiasm and a potential short squeeze, reminiscent of the meme stock phenomenon seen in recent years. However, Tuesday's downturn suggests that the momentum may be waning as market participants grapple with the company's underlying fundamentals.

Analysts and market observers have raised concerns about Opendoor's business model and profitability prospects. The company, which operates an online platform for buying and selling homes, has struggled to achieve consistent profitability since its inception. Critics point to its thin margins, high operating costs, and vulnerability to housing market fluctuations as significant challenges. Despite generating billions in revenue, Opendoor reported a net loss of $368 million over the past year, highlighting the difficulties in scaling its iBuying model profitably. As the initial excitement of the meme stock rally subsides, these fundamental issues appear to be weighing on investor sentiment, contributing to today's selloff.