Eric Jackson: Hold On to Opendoor Shares Despite Recent Volatility

Eric Jackson, a hedge fund manager, is asking investors to hold on to shares of Opendoor Technologies despite recent volatility. Jackson has a long-term target of $82 per share, representing a 3,900% upside from current levels. He bases his projections on the forward enterprise value-to-revenue ratio, which he says is used for platforms like Carvana and Uber. Jackson acknowledges that next week's earnings call may not convince skeptics, but he encourages investors to remain patient, saying "Rome wasn't built in a day. Neither were 100-baggers."

Opendoor Technologies Inc. (NASDAQ: OPEN) has been experiencing significant volatility in its stock price, with a recent decline of -15.17% driven by mortgage rate concerns [1]. The company has delayed its special stockholder meeting to August 27, 2025, to consider a reverse stock split strategy, which is crucial for meeting Nasdaq’s listing standards [1].

Opendoor Technologies is grappling with compliance issues related to Nasdaq’s minimum share price requirement, potentially endangering its market presence [1]. The company’s financial performance has been challenging, with revenues of $5.15 billion but profit margins hovering below zero [1]. The total debt-to-equity ratio stands at 3.92, and revenues have decelerated sharply by 25.56% over the past three years [1].

Analysts have provided varying ratings for Opendoor Technologies. Five analysts have given a "Hold" rating, one analyst has a "Buy" rating, and one analyst has a "Sell" rating [2]. The average 12-month price target is $0.83, representing a -64.53% change from the last price of $2.34 [2]. Analysts like Ygal Arounian from Citi have lowered their price targets significantly, from $1.40 to $0.80, citing valuation concerns and strategic shifts [2].

Eric Jackson, a hedge fund manager, is encouraging investors to hold onto shares of Opendoor Technologies despite recent volatility. He has a long-term target of $82 per share, representing a 3,900% upside from current levels [1]. Jackson bases his projections on the forward enterprise value-to-revenue ratio, which he says is used for platforms like Carvana and Uber. He acknowledges that next week’s earnings call may not convince skeptics but encourages investors to remain patient [1].

The company's cash flow has been negative, with operating cash flow at a negative $279M, highlighting a challenging path ahead [1]. The current ratio of 3 indicates that the company can meet its short-term obligations, but the reliance on debt financing raises concerns about liquidity and investor confidence [1].

Opendoor Technologies faces a pivotal moment as it navigates compliance issues and financial challenges. The upcoming shareholder vote on August 27, 2025, will be crucial for the company’s future. The market is closely watching Opendoor’s strategic realignment and financial health, with investors reacting with skepticism to the recent stock price declines [1].

References:

[1] https://stockstotrade.com/news/opendoor-technologies-inc-open-news-2025_07_29/
[2] https://www.tipranks.com/stocks/open/forecast