Opendoor Technologies (OPEN) shares soared on Monday as retail investors piled into the newest meme stock.
Shares of the online home buying company were up almost 95% in recent trading after nearly tripling in value last week.
Opendoor stock took off last Monday after Eric Jackson, founder of EMJ Capital, announced his firm had taken a position in the company and said the stock “could be a 100-bagger over the next few years.” The term refers to stocks that return $100 for every $1 invested.
Jackson compared Opendoor with Carvana (CVNA), which appeared on the brink of bankruptcy in 2023, “but they cut costs, stabilized, and the stock went up 100x.” Opendoor, he said, could be in the same position. Jackson forecast it will report positive EBITDA for the first time next month, which he says could revive Wall Street’s faith in the stock.
Before Jackson’s post, Opendoor shares had lost nearly 98% of their value since closing at an all-time high of almost $36 in February 2021. If Opendoor regains the valuation it achieved four years ago, the stock should trade at $82, according to Jackson.
Reddit Users Post Shots of Their Opendoor Trades
Shares rose 15% last Monday and another 15% on Tuesday. The stock’s gains accelerated on Wednesday as users of the Wallstreetbets subreddit—notorious for fueling the Gamestop meme stock frenzy in 2021—began sharing screenshots of their Opendoor trades.
The rally has come at an opportune time for Opendoor. In late May, the company was notified by Nasdaq that its stock was at risk of being delisted because it traded below $1 for 30 consecutive business days. The company had 180 days to increase its share price to meet listing standards. In early June, Opendoor proposed a reverse stock split that would boost its share price by as much as 50x.
The recent rally has given Opendoor hope of meeting the Nasdaq’s listing standards, which require the stock’s closing bid price to exceed $1 for 10 consecutive business days within the 180-day grace period that started at the end of May. Shares have closed above $1 in each of the last four sessions, and were trading above $4 at midday Monday.
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