Stocks for iBuying real estate company Opendoor (OPEN) have surged once more, increasing approximately 71% today as of 12:18 p.m. ET. The stock’s rise is attributed to meme-stock trading and optimistic social media comments from Eric Jackson, the founder of EMJ Capital.
This meme stock could have legs
Reddit’s WallStreetBets community has taken notice of Opendoor, which in turn has been fueled by a significant level of short interest. Consequently, the stock has surged remarkably this month, with its value nearly doubling six times over (approximately 600% increase) as we speak.
Apart from retail traders, the founder of EMJ Capital, Eric Jackson, is also investing in the same stock. Known for his knack of choosing stocks that have proven to be significant multipliers, Jackson’s past successful investments include Carvana, Coinbase, Roku, Alibaba, among others. In a recent tweet, Jackson restated his belief from last week, asserting that the share price of Opendoor could reach $82 (currently trading below $4).
Speaking as an ardent observer of the real estate world, I must say that Opendoor stands out as a pioneer in the digital home buying scene. This innovative platform buys homes directly from sellers online and offers cash transactions on the spot. The ultimate goal? To resell those properties at a higher price point.
However, it’s no secret that the broader housing market has faced some tough times recently. And while Opendoor represents a fresh approach, the iBuying model is still in its infancy, often yielding narrow profit margins. But for those seeking speed and convenience in their property transactions, Opendoor remains an attractive option.
Meme stocks are always very risky
It seems that Opendoor is reportedly moving towards a model that relies more on real estate agents for assistance, as suggested by analysts at Citizens JMP last month. This change could potentially lead to a more cost-effective business with higher profits. However, the company has a considerable amount of work ahead and is currently grappling with high expenses and significant debt.
Given its current market value in the billions and consistently reporting substantial losses per quarter, it’s evident that this stock has drifted away from its underlying financial performance. As a result, it could experience significant volatility, potentially leading to large price drops. Proceed with caution; investing here involves a high level of risk.
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2025-07-21 20:03