Here's What's Going On With Opendoor Stock—And Why It 'Could Be A 100-Bagger'

Shares of Opendoor Technologies, Inc. (NASDAQ:OPEN) have soared in recent weeks, climbing another 10.8% on Thursday and pushing its one-month rally close to 200%. 

The surge has been driven by fresh interest from retail investors and the endorsement of EMJ Capital founder Eric Jackson.

What To Know: Jackson laid out his reasons for backing Opendoor in a social media post on Monday, saying "it could be a 100-bagger over the next few years."

He identified several positive industry and company-specific trends, even suggesting the potential for the stock to increase one hundredfold in the years ahead.

"Let's talk upside math. If $OPEN goes to $12B in revenue in a few years (already the Bloomberg consensus estimate)… And if the market gives them a 5x EV/revenue multiple again (as it did at the 2021 peak)…That's a stock price of $82. 100x from here," Jackson wrote. 

Since his post, the stock price has about doubled, closing at $1.65 on Thursday. 

A central point of Jackson's thesis is that with Zillow Group, Inc. (NASDAQ:Z) and Redfin Corp. (NASDAQ:RDFN) having stepped away from iBuying in the last few years, Opendoor now effectively dominates the market segment. 

The company's iBuyer model, which relies on technology to buy homes directly for cash, perform basic renovations and resell them, was once a popular approach among major real estate firms, but most have retreated to focus on other areas.

Jackson told Yahoo Finance on Thursday that investor sentiment could play a major role in the stock's reversal. 

“I think it just shows how mispriced the stock has been over the last, I don’t know, year and a bit,” Jackson said. 

“The valuation was so off that if people did start to change their opinions, this thing could move a lot, not just double or triple or quadruple.”

OPEN Stock Price: According to data from Benzinga Pro, Opendoor Technologies stock was up 20% at $1.98 at the time of publication Friday.

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