Opendoor Surges 175% Amid Hedge Fund Endorsement, Short Squeeze Fears

Opendoor Technologies surged 175% this week after a hedge fund manager, Eric Jackson, endorsed the company's leaner cost structure and push for profitability. The stock's volume reached 340 million shares on Friday, with short interest at 24% of the free float. Options traders also swarmed in, driving call volumes to record highs. However, put option activity jumped late Friday, hinting at a potential reversal.

Title: Opendoor Technologies Surges 175% on Eric Jackson's Endorsement

Opendoor Technologies Inc. shares have surged 175% this week, making it the latest stock to experience a speculative retail-driven rally. The surge began after Eric Jackson, founder of Toronto-based hedge fund EMJ Capital, praised the stock on social media, drawing significant attention from traders [1].

Shares in the online platform for buying and selling US real estate jumped as much as 39% as of 2:15 p.m. in New York. If the gains hold through the session, the stock would gain more than 175% this week. The surge started after Jackson started to praise the stock on X late last week, garnering traders’ attention [1].

The stock's volume reached 340 million shares on Friday, more than 346% of the three-month average. Short interest in the stock is roughly 24% of the free float, according to data compiled by S3 Partners. Options volumes in Opendoor also surged, hitting record highs this week as traders piled into bets that the stock would keep rising. Implied volatility spiked as investors paid up for both short-term and longer-dated bullish call options. However, trading in put options surged on Friday, suggesting that some investors expect the rally to end soon [1].

Jackson believes that Opendoor faces no true competition now that Zillow and Redfin have exited the iBuyer game. He sees Opendoor as similar to a bet on Coinbase before the collapse of FTX. When Opendoor reports earnings on Aug. 5, Jackson predicts the company will show its first quarter of positive EBITDA. He also agrees with analyst consensus estimates that Opendoor is likely to print revenue of $11.6 billion in FY 2029. In fiscal 2024, Opendoor's revenue tallied $5.2 billion [2].

The stock's recent performance has been fueled by retail traders who have piled into the trade. In the past 24 hours, at least a dozen posts citing bullish options plays on Opendoor were posted to the r/WallStreetBets Reddit page, garnering over 2,000 comments [2].

While the stock's performance has been impressive, it is important to note that the surge is largely driven by retail enthusiasm and a bullish thesis from investor Eric Jackson, rather than fundamental changes in the company. The stock was down 51% this year before this week’s eye-popping jump [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/opendoor-s-175-surge-puts-it-on-pace-for-its-best-week-ever
[2] https://www.ainvest.com/news/opendoor-stock-surges-189-hedge-fund-manager-eric-jackson-backs-company-2507/