TLDR
- Opendoor (OPEN) jumped 42% Friday after Powell’s rate cut hints at Jackson Hole
- Stock hit 52-week high, breaking above $5 for first time in two years
- Year-to-date gains now exceed 213% despite company remaining unprofitable
- Analysts maintain Moderate Sell rating with $1.02 average price target
- Retail investors target $10 share price driven by social media momentum
Opendoor Technologies (OPEN) delivered a spectacular 42% rally Friday, catapulting shares to their highest level in 52 weeks. The surge followed Federal Reserve Chair Jerome Powell’s Jackson Hole speech hinting at potential September rate cuts.
The real estate technology platform’s stock breakthrough above $5 marked its first time crossing that threshold since 2022. This performance landed Opendoor among the S&P 500’s top four gainers Friday.
Social Media Frenzy Drives Momentum
Retail traders flooded Stocktwits, making Opendoor the platform’s most trending ticker by Sunday. Bullish sentiment dominated discussions, with investors posting ambitious $10 price targets for the coming week.
High-profile supporters amplified the excitement. Podcaster Anthony Pompliano, who holds an Opendoor stake, credited Powell’s rate cut openness as a major catalyst. Eric Jackson from EMJ Capital echoed this enthusiasm, calling potential cuts a nice addition to Opendoor’s bullish case.
Jackson previously sparked a 200% four-day rally last month through his public commentary. His influence demonstrates how social media personalities can drive meme stock movements independent of fundamental analysis.
Financial Fundamentals Remain Challenging
Despite the stock surge, Opendoor’s business metrics tell a different story. The company reported a Q2 loss of $0.04 per share, slightly worse than the expected $0.03 loss.
Revenue provided some positivity, growing 4% year-over-year to $1.6 billion and beating analyst estimates of $1.5 billion. However, the real estate platform remains unprofitable and highly sensitive to housing market conditions.
Wall Street Skepticism Persists
Professional analysts maintain a cautious stance despite retail enthusiasm. Seven Wall Street analysts give Opendoor a consensus Moderate Sell rating, including one Buy, two Hold, and four Sell recommendations.
The average price target of $1.02 suggests nearly 80% downside from current levels. This disconnect highlights the gap between professional analysis and retail speculation.
Opendoor’s 213% year-to-date performance far exceeds major market indexes’ 11% gains. The company is also conducting a CEO search following recent leadership changes, which retail investors view as another potential catalyst.
The stock’s recent momentum appears driven more by speculative trading than improving business fundamentals, with interest rate sensitivity being the primary connection between Fed policy and Opendoor’s real estate operations.
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