Once a penny stock struggling to keep its head above water, online home flipper Opendoor Technologies (OPEN) is staging an astounding comeback. The company’s shares have exploded more than 430% in just one month, transforming OPEN stock from a Wall Street underdog into one of the hottest names on the tape.
The meteoric rise gained ferocious momentum starting on July 14, when EMJ Capital founder Eric Jackson disclosed a new position in OPEN. Jackson called the stock a potential “100-bagger” and projected the company would post its first positive EBITDA as early as next month. The vote of confidence set the spark, but what followed was an outright blaze.
Opendoor rallied 15% the day that Jackson posted his remarks and shares never looked back. Daily double-digit surges followed, culminating in a fresh 52-week high of $4.97 on July 21. At one point that day, OPEN stock skyrocketed as much as 115% intraday before triggering a Nasdaq volatility halt.
As the dust settles, investor eyes are fixed on what comes next.
About Opendoor Stock
Opendoor operates as a full-stack iBuyer. With a market capitalization of $2.3 billion, its core business revolves around purchasing homes directly from sellers, carrying out necessary upgrades, and selling them at a premium. The company also runs an integrated ecosystem that includes a digital marketplace and agent services to support the buying and selling experience.
Over the last 52 weeks, OPEN stock has delivered a respectable 14% return. However, that performance pales in comparison to what has unfolded in recent months. In the last six months alone, the stock has surged 105%. In just the past three months, shares have skyrocketed roughly 190%.
Opendoor Surpasses Q1 Earnings
On May 6, Opendoor released its fiscal 2025 first-quarter results, handing Wall Street an earnings report that outperformed expectations. Although revenue dropped 2.4% year-over-year (YOY) to $1.15 billion, the company still beat the consensus estimate of $1.06 billion.
Yet in Opendoor’s business model, revenue alone tells only part of the story. The company can generate revenue by flipping homes, regardless of whether it books a profit, which is why analysts tend to focus more on profitability and cash flow.
On that front, the company made notable strides. Adjusted net loss narrowed 21% to $63 million, with net loss per share narrowing 25% to $0.12. This came in better than analyst projections. More importantly, adjusted EBITDA loss was reduced to $30 million from $50 million a year earlier, signaling operational improvements.
Despite weak buyer demand, management offered forward guidance that struck a cautiously optimistic tone. The company expects adjusted EBITDA in Q2 to swing into positive territory, between $10 million and $20 million. Meanwhile, 3,609 homes were acquired during Q1, up 4% YOY as the company geared up for peak buying season.
Opendoor currently holds $559 million in cash on its balance sheet, which provides a runway to manage near-term operations. However, it cannot afford to keep losing money indefinitely. The company is slated to report Q2 earnings on Aug. 5, and is projecting revenue between $1.45 billion and $1.53 billion along with contribution profit of $65 million to $75 million.
Meanwhile, analysts expect Q2 loss per share to narrow 56% YOY to $0.04. For full-year fiscal 2025, the loss per share is expected to reduce by 55% to $0.24 and further tighten by 4.2% to $0.23 in the next fiscal year.
What Do Analysts Expect for Opendoor Stock?
Eric Jackson’s bullish bet has undeniably put Opendoor back in the spotlight. Jackson outlined a price target of $82, calling OPEN a multi-year compounding opportunity. While this projection has energized retail traders, the broader analyst community remains skeptical.
Opendoor still grapples with profitability issues, and its balance sheet shows significant debt obligations. That limits flexibility and increases vulnerability to macroeconomic pressures.
Currently, the consensus rating on OPEN stock is “Hold.” Among the 10 analysts with coverage, only one has a “Strong Buy" rating while seven recommend to “Hold.” One analyst rates the stock a “Moderate Sell," while another rates it a “Strong Sell.”
The average price target is set at $1.14, well below the current market price. In fact, shares now trade above the Street-high price target of $2 as well. Amid intense market euphoria and tempered analyst caution, OPEN stock's sharp rally may warrant patience over pursuit at these elevated levels.
