June 6th, Online Real Estate Service Open door With the defeated stock price back to more than $1 and still listed on the Nasdaq, management could propose a reverse split and raise the price of each share up to 50 times.
Stock has risen over the next five weeks.
Eric Jackson then began cheerleading.
Jackson, a hedge fund manager who was bullish at Opendoor several years ago when the company was thriving and seemed to be worth around $20 billion, wrote to X on Monday that his company, EMJ Capital, has returned to stocks.
“@emjcapital has taken the position at $open and we believe it could become a 100 bugger in the coming years,” Jackson wrote. He added that the stock could be $82 later in the thread.
It’s a long way from that mark.
Opendoor Shares rose 189% this week, at its best performance every week since its open market debut in late 2020. Stocks closed at $2.25 on Friday. The record-highest volume trading days were this Wednesday, Thursday and Friday.
Jackson said in an interview Thursday that the majority of his company’s OPENDOOR purchases came when stocks in the ’70s and ’80s meant cents, and he also bought options for his portfolio.
Nothing has fundamentally improved for the company since the Jackson purchase. Opendoor remains a low cash burning margin business with a small short-term growth outlook.
What changed dramatically was Jackson’s online influence and the magnitude of his followers. The more he posts, the higher the inventory will be.
“There’s a real hunger for buying the next big thing,” Jackson told CNBC, adding that investors want to find “oppressed.”
This is something that the Toronto-based Jackson company has in common with Opendoor.
When Opendoor was published in 2020 through a special purpose acquisition company, it was riding on wider profits driven by the waves of Spack and low interest rates and the market euphoria of the Covid era. Investors have lifted up the startups of technology that send money to the most risky assets and lose money into astronomical valuations.
Opendoor’s business used technology to buy and sell homes and pocket profits. Zillow I tried to compete.
Opendoor stock peaked in February 2021 at a market capitalization of over $39, slightly above $22.5 billion. However, by the end of the year, the stock was trading for less than $15, but in 2022 92% collapsed and ended at $1.16.
The rising interest rates have attacked the entire technology sector, particularly fiercely attacking the OPENDOA as increased borrowing costs reduces demand for homes.
Similarly, Jackson had a tragic 2022, coinciding with the worst year of NASDAQ since 2008. Jackson said his major clients withdraw the money at the end of the year, “I’ve been small ever since.”
“An epic comeback”
Jackson’s reputation for entering the rebound story early, although his assets under management remain minimal. Carbana.
In 2022, the automotive e-commerce platform lost 98% of its value in 2022 as investors slammed the possibility of bankruptcy. In the middle of the year, Calvana was still far from escaping the bottom, so Jackson expressed his ferociousness. He spurred a recovery with a podcast in June after telling CNBC he liked stocks in April. He also said he liked OPENDOOR at the time.
Investors that would hinder further losses in 2022 were given a 1,000% profit in 2023, and from there they were far more upside down. The shares closed at $347.52 on Friday, rising from the $3.72 low in December 2022, with prices almost tripling when Jackson made his appearance at CNBC in April of that year.
After Calvana’s 2022 slide, “We’ve clearly started an epic comeback,” Jackson said. Meanwhile, Opendor “continued to roll over the mountains,” he said.
Jackson said the 2022 fallout has led him to pursue alternative ways of stocking. He began hiring a small team of developers, currently four, to build an artificial intelligence model. The company experimented with several models – some were working, some were not – but he now said that what he learned from Calvana is to find an opportunity “100 times more”;
In addition to the OPENDOOR, Jackson has been promoted IrenBitcoin mining and AI workload power providers, and Crypto miningIt is in a similar space. He has seen him follow on Elon Musk’s social media site X. He said he has been stuck between 32,000 and 34,000 for years. And after a long lull, he said investors were reaching out to him and trying to put money into his funds.
Jackson is riding Opendoor, which has earned revenue and number homes sold in the first quarter for a year ago and has lost around $370 million over the past four quarters.
In early June, Opendoor announced plans for reverse splitting to “give options when saving listings on Nasdaq.” As stocks are now well above $1, it appears that this move is not necessary as shareholders are preparing to vote for the proposal on July 28th.
“I think that’s a terrible idea,” Jackson said. “These things don’t usually welcome large-scale revivals, they further strengthen the company’s transition to forgetting.”
Opendoor did not respond to requests for comment.
Growth Bank
According to LSEG, analysts forecast revenues drop by more than 5% this year, with a 20% growth rate in 2026 and a 12% growth in 2017. The loss is expected to be narrowed with that stretch.
Jackson said the analytical factors in its 2029 revenue forecast of $11.5 billion will well exceed twice the company’s expected revenue this year. He said he looks at multiples of companies like Zillow and Carvana and trades with 4-7 times the advance revenue. Opendoor’s forward value to sales ratio is currently well below 1.
Zillow and redfin With the immediate purchase of home markets, Opendoor faces little competition by allowing homeowners to sell online in cash rather than going through an extended bid, sales and closure process.
Jackson will lead banks to banks to grow revenue and increase in market share, leading to profitable businesses that encourage investors to value the company in multiple locations between Zillow and Carvana. At $82, Opendoor is worth around $600 billion, roughly five times its revenue in 2029.
Jackson assumed that his model “like the Carvana, the OPENDOOR can prove that it can turn the tide forever and achieve sustained profitability.”
In the meantime, he will continue to post on X.
On Friday, Jackson wrote a thread consisting of 11 posts, recounting the challenge of “99.5% of my AUM” disappearing overnight after his major investors left in 2022.
“Translation: He fired me for losing too much money,” Jackson wrote. He said he mostly shut down the funds and even said he was encouraged by his wife and accountant to do so.
Now, Jackson is still using his recent momentum on social media to try and attract investors’ money and potentially lose it.
“All I have is my reputation,” he wrote.
See: Still not sure if the IPO market is back to full health
