Opendoor (OPEN) shares soared more than 100% on Monday as retail traders continued to flock into the digital real estate platform that streamlines the buying and selling of homes in the U.S.
OPEN’s rally caught steam last week after Eric Jackson, a globally renowned hedge fund manager, revealed a super bullish stance on the San Francisco-headquartered firm.
At the time of writing, Opendoor stock is trading at about 9x its price in the final week of June.
What Eric Jacson Recently Said About Opendoor Stock
OPEN shares have experienced a cosmic run in recent sessions primarily because Jackson said his firm EMJ Capital has built a sizable position in the Nasdaq-listed firm.
In his recent X post, the market veteran said Opendoor Technologies Inc could prove a “100-bagger” over the next few years, adding the stock could go as high as $82.
His comment dragged a flood of retail investors into Opendoor stock, triggering an explosive rally that can only be compared to ones previously seen in meme stocks like GameStop (GME).
According to Eric Jackson, the digital real estate company could even emerge as the next Carvana (CVNA) in the years ahead.
Here’s Why OPEN Shares Remain a High-Risk Investment
Despite Jackson’s constructive remarks on Opendoor shares, caution is warranted in buying them at current levels as the California-based company still faces significant financial headwinds.
For starters, the iBuyer continues to struggle with sustainable profitability, a milestone it’s not expected to achieve in the near future either.
Plus, Opendoor Technologies has sizable debt on its balance sheet that further limits its flexibility to scale operations or weather macroeconomic shocks without incurring steep financing costs.
How Wall Street Recommends Playing Opendoor Technologies
Investors should note that Opendoor stock is currently trading sharply above analysts’ mean target.
At the time of writing, Wall Street has a consensus “Hold” rating on Opendoor shares with a mean target of about $1.14 indicating potential downside of more than 65% from current levels.
