Online real estate company, Opendoor Technologies Inc. (NASDAQ:OPEN), tumbled for a second consecutive session, but Eric Jackson, the fund manager credited for sparking last week’s surge, remains unfazed.
Check out the current price of OPEN stock here.
What Happened: On Wednesday, in a post on X, Jackson addressed concerns regarding Opendoor’s two-day losing streak, which comes following a 483% rally over the past month.
“Water finds its level,” Jackson says, suggesting that no matter how wild a stock swings, its true value and fundamentals eventually reflect in its price.
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This was after the stock dropped 10% on Tuesday and another 20% on Wednesday, leaving investors who jumped in on the frenzy at later stages jittery. The stock is currently reversing the trend, and is up 9.17% in after-hours trading, at the time of writing.
Jackson saws a line between “meme” stocks such as GameStop Corp. (NYSE:GME) and AMC Entertainment Holdings Inc. (NYSE:AMC), and Opendoor, saying that the latter is “a real business” that is rooted in business fundamentals, as opposed to hype or social media momentum.
“Let the flippers chase the other meme stocks,” he says, marking a clear distinction between Opendoor and the others, while adding that “This isn’t a meme stock. It’s a real business.”
In a subsequent post on Wednesday, Jackson asks his followers to compare the one-month chart of Opendoor, as well as those of “other crappy meme stocks.” One of them is real, the others are not, he says, while highlighting other stocks with similar growth potential.
Why It Matters: Last week, Jackson ignited Opendoor’s monumental rally by comparing the stock with Carvana Co. (NYSE:CVNA), a once-beaten-down used car retailer, which he invested in at $21 a share, and now trades up 1,576%. Since then, he calls himself “the Carvana hedge fund guy.”
Early this week, Jackson advised investors in Opendoor to buy core positions and “sit on your hands” for the long haul, while cautioning against selling too soon and overtrading.
He reiterated his target of $82 a share, if the company can achieve consistent profitability, which represents a 3,480% upside from Wednesday’s closing price.
Price Action: On Wednesday, Opendoor shares dropped 20.49%, trading at $2.29, but is up 9.17% after hours.
The stock scores high on Momentum and Value in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, the company, and its prospects.
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