Opendoor Investor Who Ignited 500% Rally Gives You His '100-Bagger' Playbook
Opendoor Technologies, Inc. saw its stock rise after a significant drop, driven by hedge fund manager Eric Jackson's insights on retail investor momentum. Jackson believes Opendoor, as the last major iBuyer in the U.S., is poised for growth, projecting a potential stock value of $82 if profitability is achieved. He advises investors to hold core positions and avoid overtrading. Opendoor's stock has surged 500% in the past month, closing at $3.30, up 2.96% on Tuesday.
The Opendoor Technologies, Inc. OPEN rollercoaster continued on Tuesday, with the stock climbing in early trading after a breathtaking drop on Monday afternoon. Eric Jackson, the hedge fund manager who ignited the rally, shared his playbook for profiting from the volatility.
The Details: Jackson appeared on "From the Desk Of Anthony Pompliano" and spoke about Opendoor's feverish rally and retail investor momentum.
He credited retail traders with spotting trends and described them as shifting toward new, high-potential names that have more room to run than the "Mag Seven" tech giants.
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The Opendoor ‘Meme Stock’ Thesis
Jackson's conviction centers on Opendoor's position as the last major iBuyer in the U.S. after competitors like Zillow and Redfin exited the home-flipping market. He believes Opendoor's platform and national scale put it in a unique spot to capture market share when real estate conditions improve.
He projects that if Opendoor can achieve steady profitability, investors may rerate it to a much higher valuation multiple, potentially making the stock worth $82—a roughly 100x increase from when it traded under $1.
Jackson could be onto something, given how Opendoor stock is up 500% over the past month.
Eric Jackson's OPEN Trading Strategy
The hedge fund manager disclosed that most of his position in OPEN was purchased at very low price levels. He advised retail investors to buy core positions and "sit on your hands" for the long haul if the fundamental thesis persists.
Jackson also said with a longer timeframe.
He cautioned against selling too soon and overtrading a stock–both mistakes Jackson admitted to making in the past.
Bottom line: Jackson advised retail investors to seek a unique edge and to trust research and the power of rare, asymmetric opportunities like Opendoor.
OPEN Stock Price: Shares of Opendoor Technologies were up 2.96% at $3.30 on Tuesday, according to data from Benzinga Pro.
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