Opendoor Technologies, Inc. (NASDAQ:OPEN) is one of 2025's wildest stock market stories, and the social-media-fueled frenzy continued on Monday.
What To Know: Last week, hedge fund manager Eric Jackson lit a fire under Opendoor shares with a viral social media post suggesting that the stock price could increase one hundredfold to $82 per share.
Opendoor stock achieved "meme status" and remained one of the top trending tickers on Monday, fueled by retail investors' speculation that it could be "the next Carvana."
Read Next: Here’s What’s Going On With Opendoor Stock—And Why It ‘Could Be A 100-Bagger’
$40 Per Share?
Jackson posted more of his thesis over the weekend, including his thoughts on why the stock should be trading at $40 per share right now.
"Everyone keeps asking me, ‘What's $OPEN worth now?’ We know it's worth $82 in a few years," Jackson wrote in a post on X. "The answer is it's worth $40 now after they report a profitable quarter with hints that they're at steady -state profitability going forward," he added.
Opendoor is set to report its second-quarter results on Aug. 6, but the Street consensus estimates do not anticipate a profitable quarter. According to estimates from Benzinga Pro, analysts expect the company to report a loss of one cent per share and revenue of $1.5 billion for the quarter.
Jackson continued his valuation argument for Opendoor Technologies, stating that if the company achieves steady-state profitability, its valuation should be higher, similar to Carvana.
"They'll do $5.75B in rev next year. They deserved a forward EV/Rev multiple of 5x like $CVNA $1.2B net debt $559M cash 723M shares They should be trading at $40 right now," he wrote.
Reality Check
The market currently values Opendoor much lower because the company has never turned a profit, with over $3.8 billion in cumulative losses to date and still faces significant macro and business model risks.
The stock also faces an ongoing threat of delisting from Nasdaq due to its low share price. In fact, Opendoor will hold a shareholder vote on a potential reverse stock split on July 28 to preserve its listing on the Nasdaq.
However, the facts don't seem to bother retail investors, who have pushed Opendoor stock even higher with more than 400 million shares already traded at the time of publication on Monday.
OPEN Stock Price: Shares of Opendoor Technologies were up 44.7% at $3.25, according to data from Benzinga Pro.
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