Opendoor stock continues rally amid social media fueled frenzy, Eric Jackson says ‘it's worth $40 now'
As of 1:14 PM EDT, the stock jumped 93.78% at $4.36 in New York.
The surge started after Eric Jackson, founder of Toronto-based hedge fund EMJ Capital, praised the stock on social media platform X late last week.
On Friday, Jackson said in an interview that he's bullish on Opendoor because of its dedication to optimized profitability and how it manages costs and headcount.
In a viral post, he suggested that the stock price could rise one hundredfold to $82 per share.
Over the weekend, he posted his thoughts on why the stock should be trading at $40 per share right now.
"Everyone keeps asking me, 'What's $OPEN worth now?' We know it's worth $82 in a few years," Jackson wrote in a post on X.
"The answer is it's worth $40 now after they report a profitable quarter with hints that they're at steady -state profitability going forward," he added.
Roughly 340 million shares exchanged hands in Friday's intraday trading, more than 346% of the three-month average.
The company made its public market debut in 2020 by merging with a special purpose acquisition company.
Its stock price has slumped since a boom in early 2021. The stock was down 51% this year before Friday's jump.
Opendoor is set to report its second quarter results on August 6.
The company is expected to report a loss of 1 cent per share and revenue of $1.5 billion for the quarter, reported Benzinga.
But Jackson stated that if the company achieves steady-state profitability, its valuation should be higher, similar to Carvana.
"They'll do $5.75B in rev next year. They deserved a forward EV/Rev multiple of 5x like $CVNA $1.2B net debt $559M cash 723M shares They should be trading at $40 right now," he wrote.
-- With inputs from Bloomberg
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