Opendoor Skyrockets 314% In A Month Amid Meme Stock Mania: Hedge Fund Manager Who Reaped Windfall Gains Says 'I'm Not Here To Pump Up A Stock'
Opendoor Technologies Inc. (NASDAQ:OPEN) has surged 341.51% month-to-date, largely driven by an X post from Eric Jackson on July 14, amid the meme stock frenzy. However, Jackson, the founder of EMJ Capital, believes that OPEN isn’t a meme stock.
Check out the OPEN stock price here.
What Happened: The online real estate platform, Opendoor, has seen its gains trimmed over the last five trading sessions, declining by 40.08% despite a 340% rise over the past month.
On July 14, Jackson posted a thread on X outlining his bullish thesis on Opendoor. He announced that his hedge fund had taken a long position in the stock, which was trading under $1 at the time, and predicted it could reach $82 per share in the coming years, potentially becoming a “100-bagger.”
This decline followed the correction in other meme stocks that rallied with OPEN during the same period. Krispy Kreme Inc. (NASDAQ:DNUT) zoomed 41.24%, Kohl’s Corp. (NYSE:KSS) rose 51.30% and GoPro Inc. (NASDAQ:GPRO) advanced 85.53% during the last month.
But talking about Opendoor, Jackson told Business Insider that “I’m in this for the long run. I’m not here to pump up a stock and jump out of it. I’ve never done that.”
He explained that he took “offense” when Opendoor was compared to the meme stocks, as he thinks of meme stocks as having “kind of terrible businesses” and he would never own one. According to him, Opendoor is a legitimate turnaround story, and he has been bullish on the stock since the pandemic in 2020.
According to Benzinga Pro, OPEN has jumped 159.77% since July 14 after Jackson posted an X thread highlighting his views on the company.
See Also: Palantir’s Next Stop Is $200, Says Jim Cramer As PLTR Glides ‘Like A Knife Through Butter’
Why It Matters: Jackson’s optimism was based on several factors;
- Opendoor’s cost-cutting efforts.
- The firm’s market leadership in the iBuying space following the exit from competitors like Zillow and Redfin.
- The potential for a housing market recovery is driven by expected interest rate cuts.
Furthermore, Jackson, in his July 14 thread, also compared Opendoor's potential to Carvana Co.‘s (NYSE:CVNA) turnaround, where he had also made an early bullish call.
He criticized Opendoor's proposed reverse stock split and called for operational improvements, including better execution from CEO Carrie Wheeler and the potential return of co-founder Keith Rabois.
Price Action: On Monday, OPEN fell 7.87% to $2.34 per share. It was up 47.17% year-to-date and down 6.02% over the last year.
Benzinga's Edge Stock Rankings indicate that OPEN maintains solid momentum across short, medium, and long-term periods. However, while the stock scores well on value rankings, its growth rating remains relatively weak. Additional performance details are available here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, ended on a mixed note on Monday. The SPY was down 0.025% at $636.94, while the QQQ advanced 0.31% to $568.14, according to Benzinga Pro data.
On Tuesday, the futures of the Dow Jones, S&P 500, and Nasdaq 100 indices were trading higher.
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Posted-In: Equities
