June 6, online real estate service Open It was so desperate to recover its stock market lesson beaten more than $ 1 and to remain registered on the NASDAQ that the management proposed an inverted split, potentially increasing the price of each action up to 50 times.
The stock went up in the next five weeks.
Then Eric Jackson started cheerleading.
Jackson, a healing fund manager who was optimistic about Opendoor for years earlier when the company seemed to prosper and was worth around $ 20 billion, wrote on Monday to X that his company, Emj Capital, was back in shares.
“@Emjcapital took a stand in $ open – and we think it could be a 100 bagger in the coming years,” wrote Jackson. He added later in the thread that the action could reach $ 82.
It is a long long -term path of this brand.
Opendoor’s shares have climbed 189% this week, by far their best weekly performance since the start of the company’s public market at the end of 2020. The action closed on Friday at $ 2.25. His highest negotiation days at the recorded volume were Wednesday, Thursday and Friday this week.
Jackson said in an interview Thursday that most of his business’s opendoor purchases came when the stock was in the 1970s and 80s, which means cents, and he also bought options for his portfolio.
Nothing has fundamentally improved for the company since Jackson’s purchases. Opendoor remains a small money and low margin business with meager short -term growth prospects.
What has radically changed is Jackson’s online influence and the size of its following. The more it publishes, the higher the stock.
“There is a real hunger to buy the next great thing,” Jackson told CNBC, adding that investors like to find the “oppressed”.
This is something that Jackson’s business, based in Toronto, has in common with Opendoor.
When Opendoor is made public through an acquisition company for special purposes in 2020, it rose a wave of space and wider gains pulled by the low interest rates and the euphoria of the era of the era of the trash. Investors have injected money into the risky assets, raising money by losing technological journeys against astronomical assessments.
Opendoor’s activities have involved the use of technology to buy and sell houses, pocket gains. Zillow Trying and failed to compete.
Opendoor shares culminated at more than $ 39 in February 2021 for a just of $ 22.5 billion market capitalization. But at the end of this year, the shares were negotiated below $ 15, before collapsing by 92% in 2022 to finish the year at $ 1.16.
The increase in interest rates has hammered the entire technological sector, reaching Opendoor particularly hard because an increase in loan costs has reduced the demand for houses.
Likewise, Jackson had a miserable 2022, coinciding with the worst year for the Nasdaq since 2008. Jackson said that his key customer had removed his money at the end of the year, and “I have been small since”.
‘Epic comport’
While its assets under management remain minimal, Jackson’s reputation to go early to a rebound history has been blurred by the performance of Carvana.
The automotive electronic commercial platform lost 98% of its value in 2022, investors weighed the probability of bankruptcy. In the middle of this year, Carvana still far from the bottom, Jackson expressed his optimist. He told CNBC that in April that he had loved the stock, then promoted his recovery on a podcast in June. He also said he loved Opendoor at the time.
Investors wishing to establish new losses in 2022 were rewarded by a gain of 1,000% in 2023, and much more upwards from there. The title closed on Friday at $ 347.52, against a hollow of $ 3.72 in December 2022, and almost triple its price when Jackson appeared on CNBC in April of the same year.
After Carvana’s slide in 2022, “then obviously started an epic return,” said Jackson. Opendoor, “continued to ride on the mountain,” he said.
Jackson said that the 2022 benefits led him to continue a different method of storage. He started hiring a small team of developers, which is now four people, to build models of artificial intelligence. The company has experienced several models – some worked and some did not do it – but it said that the accent is now used what he learned from Carvana to find “100x” opportunities.
In addition to Opendoor, Jackson promoted Irona power supplier for Bitcoin operations and AI workloads, and Figure exploitationwhich is in a similar space. He saw his follow-up on Elon Musk’s social media site, which, according to him, was stuck for years between 32,000 and 34,000, swelling at nearly 50,000. And after a long lull, investors contact him to try to put money in his fund, he said.
Jackson has a lot of driving on Opendoor, a company that has seen income and the number of houses sold at a first quarter compared to the previous year, and accumulated nearly $ 370 million in losses in the last four quarters.
In early June, Opendoor announced plans for a reverse split – ranging from 1 to 10 to 1 for 50 – to “give us an optionality to preserve our list on the Nasdaq”. With the action now much more than $ 1, such a decision seems to be less necessary, because shareholders are preparing to vote on the proposal on July 28.
“I think it’s a terrible idea,” said Jackson. “These things generally constitute more the passage of a company in oblivion rather than to greet a great renewal.”
Opendoor did not respond to a request for comments.
Growth Bank
Analysts predict a drop of more than 5% of income this year, followed by growth of 20% in 2026 and an expansion of 12% in 2017, according to LSEG. The losses should shrink on this section.
Jackson said his analysis factors in projections of $ 11.5 billion in revenue for 2029, which would be much higher than the sales expected from the company for this year. He looked at the multiple companies like Zillow and Carvana, who, according to him, are negotiating the income 4 to 7 times. The Opendoor price / sale ratio is currently much less than 1.
With Zillow and Redfin After leaving the market for the instant purchasing house, Opendoor faces little competition by allowing owners to sell their property online for money, rather than going through a prolonged tender, sales and closing process.
Jackson is on income growth and has increased market share to lead to a profitable company that pushes investors to assess the company with a multiple somewhere between Zillow and Carvana. At $ 82, Opendoor was worth around 60 billion dollars, or approximately 5 times the income scheduled in 2029.
Jackson said his model assumes that “like Carvana, Opendoor can prove that it can constantly turn the trend and reach sustained profitability” so that the “market multiple is reassessed”.
In the meantime, he will continue to publish on X.
Friday, Jackson wrote a thread made up of 11 positions, telling the challenge of having “99.5% of my alms” disappears overnight after his main investor retired in 2022.
“Translation: he dismissed me for having lost too much money,” wrote Jackson. He said that he had almost closed the fund and that he was even encouraged to do so by his wife and his accountant.
Now Jackson uses his recent momentum on social networks to try to attract investors’ money, while recalling the prospects he might lose.
“All I have is my reputation,” he wrote, “and, unless I continue to choose good stocks, he will be gone.”
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