Key insights
- Eric Jackson reiterated his bullish thesis on Opendoor, citing operational improvements under CEO Kaz Nejatian. He highlights increased acquisition velocity and reduced employee count per transaction. Despite headwinds from a frozen housing market and high interest rates, Jackson believes the market is mispricing the company's potential, focusing on volume rather than margin improvements. The impact on the broader US equity market is limited, but positive news for a company in a challenged sector could signal improving sentiment.
Investing.com -- Opendoor Technologies Inc. shares climbed 5.2% Friday following renewed support from EMJ Capital hedge fund manager Eric Jackson. Jackson, who famously propelled the real estate platform into meme-stock territory last year, maintains that the company is currently undergoing a massive operational transformation.
The stock has experienced extreme volatility, retreating to the $4.50 range after peaking above $10 during last year’s retail-led rally. Jackson initially built his position at $0.73, eventually publishing a bold $82 price target that sparked a significant shareholder movement and subsequent retail activism.
Central to reiterated thesis is the appointment of CEO Kaz Nejatian, the former Shopify COO who reportedly considered taking Opendoor private before joining. Jackson notes that Nejatian’s transition from a $200 billion giant to a $3 billion firm signals an extraordinary bet on the company’s underlying value.
The new leadership has moved aggressively to overhaul the iBuying model, which critics previously labeled as structurally unviable. Under the new regime, the company has reportedly increased acquisition velocity by over 400% and drastically reduced the number of employees required per transaction.
Despite the recent uptick, Opendoor faces significant pressure from a frozen housing market and high interest rates. Critics point to a $1.3 billion loss in 2025 and ongoing dilution as evidence that the business model remains fragile in a high-rate environment.
Jackson argues these headwinds are backward-looking and that the market is failing to price in a two-quarter lag between home acquisitions and sales. "The bears will focus on volume," Jackson stated regarding upcoming earnings cycles, adding that "the signal is in the margin."
Jackson remains vocal about the long-term potential of the platform, citing the strategic moves made by the current board. He emphasized the personal conviction of the executive team, highlighting their alignment with retail shareholders through specific compensation structures.
"Opendoor’s new CEO was going to buy the entire company. Instead, he’s rebuilding it in public," Jackson said. "A COO in line to run a $200B company doesn’t leave for a $3B company unless he sees something extraordinary."
The company has introduced a public dashboard to track weekly acquisition contracts, an unusual move toward transparency for a public firm. This data-driven approach aims to prove that the "Opendoor 2.0" model can remain profitable even if national home prices continue to fluctuate.
Investors are now eyeing the end of 2026 for potential adjusted net income profitability as the company scales its new mortgage and D2C products. While the road remains volatile, the current valuation below book value suggests to supporters that the narrative has yet to catch up to the operational reality.
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