A high-profile hedge fund endorsement and a surge of social media hype has catapulted Opendoor Technologies into the spotlight once again. Here's what's driving the sudden rally.
Live Market Snapshot
Opendoor Technologies (NASDAQ: OPEN), the once-hyped online home-flipping platform, has surged significantly over the past week in a stunning reversal. A mix of bullish hedge fund commentary, renewed Reddit chatter, and high short interest has catapulted Opendoor into meme stock territory once again.
The Catalyst: A Hedge Fund's Bold Call
The rally was ignited by a viral post on X (formerly Twitter) from Eric Jackson, founder of EMJ Capital, who laid out a detailed bull case for Opendoor. He revealed his firm had taken a position and slapped a bold **$82 price target** on shares — implying a nearly 50x return.
We've taken a position in Opendoor ($OPEN). See it as a deep value turnaround play. With cost cuts, iBuying leadership, and rate cuts on the horizon, we see a path to $12B revenue by 2029. This could be a rare 100-bagger.
This isn’t Jackson’s first successful contrarian bet. In 2023, he famously predicted a turnaround for Carvana when its stock was languishing around $11. Today, Carvana trades over $350, lending credibility to his latest call.
A Familiar Playbook: Meme Stock Momentum
Retail investors responded quickly, spreading Jackson's thesis across r/WallStreetBets and StockTwits. The stock has all the makings of a classic short squeeze candidate.
Extremely Bullish
22%
The Bull vs. Bear Thesis
The Bull Case
- Deeply undervalued turnaround play.
- Substantial cost-cutting by management.
- Dominant leader in the iBuying market.
- Potential tailwinds from future interest rate cuts.
The Bear Case (Wall Street)
- Continued challenges in the U.S. housing market.
- Long-term viability of the iBuying model is unproven.
- Company has never posted a profitable year.
- Goldman Sachs has a $0.90 "Sell" rating.
The Bottom Line
Opendoor’s revival may seem surprising, but it checks all the boxes for a classic meme stock surge. Whether this marks a true turnaround or just a short-lived squeeze, the stock is no longer flying under the radar.
- The Catalyst: A viral post from a respected hedge fund manager with a successful track record ignited retail interest.
- Short Squeeze Potential: With over 22% of the float sold short, the stock is a prime candidate for a squeeze if buying pressure continues.
- Fundamental Risks Remain: The company is still unprofitable and faces significant headwinds from the housing market, according to major Wall Street analysts.
