Eric Jackson's Opendoor Thesis: A 100x Stock with AI-Powered Price Estimator and Assumable Mortgage Opportunity

Hedge fund manager Eric Jackson, known for predicting Carvana's 100x move, has called Opendoor Technologies a 100x stock. Jackson believes Opendoor's iBuying business and vast data set could be a big winner when macro headwinds turn around. He thinks the company could use its data to build an AI-powered price estimator and prediction tool, and license it for high-margin revenue. Opendoor's assumable mortgage opportunity is also seen as a potential catalyst.

Hedge fund manager Eric Jackson, known for predicting Carvana's 100x move, has sparked significant interest in Opendoor Technologies (NASDAQ: OPEN) by labeling it a 100x stock. Jackson's bullish thesis on Opendoor centers around the company's iBuying business and its vast data set, which he believes could be a big winner when macro headwinds turn around [1].

Jackson posits that Opendoor's lack of competition in the iBuying space, coupled with its extensive data set, positions it as a strong candidate for a significant price increase. The iBuying business, which involves buying and selling homes, has faced challenges due to high interest rates and a slow real estate market. However, Jackson sees potential in Opendoor's data to create an AI-powered price estimator and prediction tool, which could be licensed for high-margin revenue [1].

Moreover, Jackson identifies assumable mortgages as another potential catalyst for Opendoor's growth. Conventional mortgage loans are generally not assumable, but several types of government-backed loans, including VA loans, are. With trillions in low-rate, assumable mortgages available, Opendoor could use these to invigorate its platform [1].

Opendoor's stock has seen a substantial rally, more than tripling in a little over a month, driven largely by Jackson's social media posts. However, the company's current financials remain challenging, with Opendoor not yet profitable and expecting a significant slowdown in the third quarter [1].

The recent appointment of Shrisha Radhakrishna as President and interim CEO, following the resignation of Carrie Wheeler, reflects Opendoor's strategic pivot towards an AI-focused platform for real estate transactions. Retail traders, particularly those involved in the volatile "meme stock" rally, have been betting on Opendoor's pivot to an AI-powered, capital-light housing marketplace, expecting a 100X return on their investments [2].

Despite the optimism, Opendoor's future remains uncertain. The company's ability to execute a successful pivot to an AI-powered marketplace platform will be crucial in determining its long-term success. High interest rates and a slow real estate market continue to pose significant challenges, and the stock remains highly speculative.

References:
[1] https://www.nasdaq.com/articles/hedge-fund-manager-who-called-carvanas-100x-move-says-stock-next-100-bagger
[2] https://www.ainvest.com/news/retail-traders-bet-opendoor-ai-powered-pivot-100x-win-2508/