Opendoor Technologies (OPEN) continues its impressive run, gaining another 10.8% on Thursday and pushing its one-month rally close to 200%. The renewed enthusiasm has been fueled by retail investors and a bullish thesis from Eric Jackson, founder of tech-focused hedge fund EMJ Capital.
Opendoor, a leader in iBuyer real estate technology, went public via a SPAC in December 2020. After peaking at $39.24 in February 2021, its shares fell below $1 within two years.
Jackson, who successfully predicted a turnaround at Carvana (CVNA), shared his bullish take on Opendoor in an X thread on July 14. He pointed to multiple tailwinds and concluded, “we believe it could be a 100-bagger over the next few years.” Since his comments, the stock has roughly doubled, closing at $1.65 on Thursday.
“I think it just shows how mispriced the stock has been over the last, I don’t know, year and a bit,” Jackson told Yahoo Finance. “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.”
Retail traders appear to be joining the momentum. Over the past 24 hours, at least a dozen bullish options posts about Opendoor appeared on the r/WallStreetBets Reddit forum, gathering more than 2,000 comments.
A key part of Jackson’s thesis is that Opendoor faces little competition after Zillow and Redfin exited the iBuyer market. iBuyer platforms use algorithms to purchase homes for cash, perform minor repairs, and quickly resell for profit. Though once backed by major real estate firms, Zillow and Redfin exited the iBuyer space in 2021 and 2022 to refocus on core services.
There isn’t a single fundamental catalyst driving the stock higher. Rather, the rally is fueled by optimism about potential future catalysts, the belief that all the negatives were already priced in when the stock was under $1, and the expectation that more investors will continue to jump in—sparking strong retail enthusiasm.
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