TLDR
- Opendoor stock has surged 180% in the past week, driven by bullish social media posts from activist investor Eric Jackson
- Eric Jackson set a $82 per share price target and praised the company’s shift to partnering with brokers instead of competing with them
- The stock received Nasdaq delisting warnings in May after trading below $1 per share for over a month
- Opendoor faces reduced competition as rivals like Zillow and Redfin have exited the iBuyer space
- Despite the surge, analysts maintain a Hold rating with an average price target of $0.83, implying 63% downside risk
Opendoor Technologies has become the latest meme stock sensation. The digital real estate platform’s shares exploded 180% over the past week.
The rally started after Eric Jackson posted a bullish thesis on X on July 14. Jackson heads EMJ Capital and was an early Carvana bull. His post included a long-term price target of $82 per share.
Trading volume spiked 140% compared to the previous month following Jackson’s post. VandaTrack data confirms this surge in retail investor activity. The stock closed at $2.25 on July 21, up 36.4% for the day.
After-hours trading pushed shares even higher to $2.97. This represents another 32% gain beyond regular trading hours.
Jackson told Yahoo Finance he sees potential strategic changes ahead. These changes could drive the stock price higher if announced. However, he isn’t launching an official activist campaign yet.
OPEN Fam: This is not a dead business like $GME. This is a real big valuable platform. Somebody who works with me when he heard I’d taken a long position in $OPEN:
Didn’t click with me but I sold my house and bought a new one about 4 years ago using Opendoor. Best model ever…
— Eric Jackson (@ericjackson) July 20, 2025
Business Model Under Pressure
Opendoor uses iBuyer technology to purchase homes directly from sellers. The company buys properties for cash, makes small repairs, then flips them for profit. This debt-heavy model has struggled with rising interest rates and a slowing housing market.
The company spent over a month trading below $1 per share earlier this year. Nasdaq issued a delisting warning in May due to the low share price.
In June, Opendoor agreed to pay $39 million to settle an investor lawsuit. The suit claimed the company’s pricing algorithms couldn’t adapt to market changes. This settlement added to the company’s financial pressures.
Strategic Shift Shows Promise
Jackson praised Opendoor’s new approach of partnering with brokers. Previously, the company competed directly with traditional real estate agents. This partnership strategy could reduce conflicts and expand market reach.
The competitive landscape has also improved for Opendoor. Major rivals like Zillow and Redfin have exited the iBuyer space entirely. This leaves Opendoor with little direct competition in its core market.
Jackson expects the company to report positive EBITDA in August. This would mark a turning point for the loss-making company. The firm reported a net loss of $368 million over the last 12 months.
Analyst Caution Persists
Wall Street analysts remain skeptical despite the stock surge. The consensus rating is Hold based on recent analyst reports. One analyst rates it a Buy, three give Hold ratings, and one recommends Sell.
The average analyst price target sits at $0.83 per share. This implies 63% downside risk from current levels. Analysts worry about the company’s financial profile and sector challenges.
Current analyst price targets hover around $2.50. This reflects guarded optimism about operational improvements. However, skepticism persists given ongoing financial risks and market conditions.
The housing market remains challenging with high interest rates. Low affordability continues to pressure transaction volumes. These factors could limit Opendoor’s growth prospects going forward.
Opendoor is scheduled to announce earnings on August 7, 2025.
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