Steve Eisman Criticizes Opendoor Stock Surge as "Social Media Short Squeeze"

Steve Eisman, known for his role in predicting the 2008 financial crisis, has criticized the surge in Opendoor's stock price, calling it a "social media short squeeze." He believes the rally was fueled by a hedge fund manager promoting the stock on social media and warns that the stock's balance sheet-intensive business is difficult to navigate. Eisman calls the target price of $82, which represents a 3,128% upside, "either gutsy, nuts, or just plain bad manipulative stuff."

Steve Eisman, renowned for his role in predicting the 2008 financial crisis, has expressed skepticism regarding the recent surge in Opendoor Technologies Inc. (OPEN) stock price. In his podcast, "The Real Eisman Playbook," Eisman criticized the 529% rally in OPEN's stock price from $0.53 to $3.21, which occurred despite a lack of meaningful news [1].

Eisman attributes the price surge to a hedge fund manager, Eric Jackson of EMJ Capital, who has been promoting the stock on social media. According to Eisman, Jackson's target price of $82 for OPEN, which represents a 3,128% upside from current levels, is "either gutsy, nuts, or just plain bad manipulative stuff." Eisman warns that Opendoor's balance sheet-intensive business model, similar to that of Zillow Group Inc. (Z), is difficult to navigate [1].

The price action of OPEN has been volatile, with the stock rising 4.96% on Friday and closing at $2.54, only to decline 1.97% after hours. Despite the volatility, OPEN maintains solid momentum across short, medium, and long-term periods, according to Benzinga's Edge Stock Rankings [2].

Jackson, however, has distanced himself from the "meme" stock label, stating that he is in it for the long run and not to pump up a stock. He believes Opendoor is a legitimate turnaround story and has been bullish on the stock since the pandemic in 2020 [2].

References:
[1] https://www.benzinga.com/markets/penny-stocks/25/07/46652251/steve-eisman-of-the-big-short-fame-calls-3128-opendoor-price-target-gutsy-nuts-or-plain-manipulative
[2] https://www.benzinga.com/markets/equities/25/07/46679779/opendoor-skyrockets-314-in-a-month-amid-meme-stock-mania-hedge-fund-manager-who-reaped-windfall-gains-says-im-not-here-to-pump-up-a-stock