Opendoor Technologies (OPEN) Stock Surges 180% Amid Bullish Thesis and Turnaround Expectations

Opendoor Technologies (OPEN) stock has surged 180% in the past week, driven by a bullish post from Eric Jackson, head of EMJ Capital. Jackson shared a turnaround thesis for the struggling company and a long-term price target of $82 per share. Trading activity has soared by 140% compared to the previous month, according to VandaTrack. Although Jackson is not launching an activist campaign, he expects Opendoor to report its first positive EBITDA in August and praised its new approach of partnering with brokers instead of competing with them. Analysts have a Hold consensus rating on OPEN stock with an average price target of $0.83 per share, implying 63.1% downside risk.

Title: Opendoor Technologies Stock Surges Amid Bullish Thesis and Trading Volume Boom

Opendoor Technologies (OPEN) stock has surged 180% in the past week, driven by a bullish post from Eric Jackson, head of EMJ Capital. Jackson shared a turnaround thesis for the struggling company and a long-term price target of $82 per share. Trading activity has soared by 140% compared to the previous month, according to VandaTrack.

Jackson, who previously shelved his activist approach after his campaign with Yahoo, made his intentions clear in a series of pointed social media posts. "But if standing between a 50¢ stock and an $82 one is what it takes — and shareholders want it — I’ll saddle up again for OPEN," Jackson posted on X. He criticized the idea of a quick acquisition or capital restructuring as insufficient, calling for operational execution instead. "You don’t get to $82 through M&A. You get there by grinding, executing, and proving the model," he wrote.

Opendoor, which has struggled amid rising interest rates and declining U.S. housing activity, has attracted growing attention from retail investors and hedge funds in recent weeks. Jackson didn’t hold back in his assessment of Opendoor’s leadership under current CEO Carrie Wheeler, calling on her to take bolder steps to demonstrate confidence in the business. "And it would be nice if she bellied up to the bar and bought a slug of stock here on the open market the way Ernie Garcia did," Jackson added. He also issued a step-by-step directive for Wheeler to reset investor confidence, including cancelling any reverse split plans and inviting co-founder Keith Rabois back into the fold.

Rabois, a prominent voice in the startup community and vocal critic of the company’s direction, echoed Jackson’s skepticism. “She is utterly incompetent. she was a mediocre CFO. and tech companies should never be led by CFOs,” Rabois wrote in response to the thread. Other investors have chimed in with support for Jackson’s thesis, including Randian Capital, which highlighted easing inflation data as a potential tailwind for Opendoor’s core business. “We agree that OPEN has a lot of upside at current levels. We would emphasize that rates are coming down, it’s simply a matter of time,” the firm posted Tuesday. Randian also pointed to Opendoor’s potential as an early bird for accepting crypto payments, following news that Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) are allowing crypto as an asset in mortgage loan assessments.

While Jackson is not launching an activist campaign, he expects Opendoor to report its first positive EBITDA in August and praised its new approach of partnering with brokers instead of competing with them. Analysts have a Hold consensus rating on OPEN stock with an average price target of $0.83 per share, implying 63.1% downside risk.

References:
[1] https://finance.yahoo.com/news/why-opendoor-technologies-stock-soaring-151134658.html
[2] https://www.asktraders.com/analysis/opendoor-technologies-stock-rallys-strongly-off-lows/
[3] https://finance.yahoo.com/news/activist-interest-lifts-opendoor-shares-222829863.html