Opendoor (OPEN) Stock: Hedge Fund Manager Calls Company 'Total Garbage' Sparking 12% Drop

TLDR

Table of Contents

Hedge fund manager George Noble calls Opendoor “total garbage” on social media, sparking 12% stock drop Monday
OPEN trades at 22x EV/revenue while competitor Compass trades at 0.9x with profitability
Eric Jackson’s focus shifts to Better Home & Finance (BETR), which surged 47% after his endorsement
Wall Street maintains Moderate Sell rating with $1.02 price target, suggesting 88% downside
Stock remains up 424% year-to-date despite recent selloff and weak fundamentals

Opendoor Technologies stock crashed 12% on Monday after hedge fund manager George Noble unleashed harsh criticism on social media. The veteran investor called the online real estate company “total garbage” in a series of posts on X.

Noble, who founded two billion-dollar hedge funds and worked as an assistant to legendary investor Peter Lynch, pulled no punches. He pointed out that Opendoor has lost money every single year since its founding.

I’ve got news for you: I’d never heard of George Nobel. And nobody else has. He is a “never was” and couldn’t name a single profitable tech trade he’d made on the ⁦@DavidDTawil⁩ spaces
His is a tale told by an idiot , full of sound and fury, signifying nothing. pic.twitter.com/Wjhp5dwMeB
— Eric Jackson (@ericjackson) September 22, 2025

The stock continued falling in extended trading and dropped another 4% in Tuesday’s pre-market session. Noble’s comments struck a nerve with investors who had been riding the meme stock wave.

“Go ahead and speculate if you wish, but don’t DARE pretend that there is a fundamental case,” Noble wrote. His harsh assessment focused on what he called “atrocious” unit economics and a business model that simply doesn’t work.

The hedge fund manager highlighted the stark valuation gap between OPEN and its competitors. Opendoor trades at 22 times enterprise value to revenue, while rival Compass trades at just 0.9 times.

Noble called out OPEN’s balance sheet as “lousy” while praising Compass for being profitable with strong finances. The contrast couldn’t be more stark for investors weighing their options in real estate technology.

The selloff comes just months after Eric Jackson’s endorsement sparked a massive meme stock rally. Jackson, founder of EMJ Capital, had praised Opendoor in July, sending shares soaring.

But Jackson’s attention has shifted elsewhere. On Monday, he announced a new investment in Better Home & Finance Holding (BETR). He compared BETR to a “Shopify for mortgages” and the stock exploded 47% higher.

Market Reality Check

The timing of Jackson’s BETR endorsement while Opendoor plummeted wasn’t lost on traders. Some analysts suggest his pivot away from Opendoor helped fuel Monday’s selloff.

Real estate sector consolidation also weighed on sentiment. Compass announced a $4.2 billion acquisition of Anywhere Real Estate, showing the competitive pressure in the space.

GuruFocus rates Opendoor as “Overvalued” based on its GF Value analysis. The company carries a market cap of $6.17 billion despite persistent losses.

The numbers tell a sobering story. OPEN sports a price-to-book ratio of 9.74, near its five-year high. The company’s debt-to-equity ratio sits at 3.46 with negative earnings per share of -0.43.

An Altman Z-score of 2.49 puts the company in the gray area for potential financial distress. These metrics support Noble’s harsh assessment of the fundamentals.

Wall Street Weighs In

Professional analysts remain skeptical despite the year’s massive gains. Wall Street maintains a Moderate Sell consensus rating on OPEN stock.

The rating comes from one Buy, two Hold, and five Sell recommendations. The average price target of $1.02 suggests 88% downside from current levels.

Even with Monday’s drop, OPEN stock is still up 424% year-to-date. The meme stock volatility has created wild swings that veteran investors like Noble find troubling.

Some bright spots exist for bulls. Insiders have purchased over 481,000 shares in the past three months. The company’s Beneish M-Score also suggests it’s unlikely to be manipulating earnings.

But Noble’s criticism about cost reduction efforts rings true for many observers. He believes these moves “will not move the needle” for a company with fundamental business model problems.

The stock closed Tuesday’s pre-market session down over 4% as Noble’s comments continued to reverberate through trading rooms.

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