Opendoor stock continues rally amid social media fueled frenzy, Eric Jackson says ‘it's worth $40 now'
As of 1:14 PM EDT, the stock jumped 93.78% at $4.36 in New York.
The surge started after Eric Jackson, founder of Toronto-based hedge fund EMJ Capital, praised the stock on social media platform X late last week.
On Friday, Jackson said in an interview that he's bullish on Opendoor because of its dedication to optimized profitability and how it manages costs and headcount.
In a viral post, he suggested that the stock price could rise one hundredfold to $82 per share.
Over the weekend, he posted 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.
Roughly 340 million shares exchanged hands in Friday's intraday trading, more than 346% of the three-month average.
The company made its public market debut in 2020 by merging with a special purpose acquisition company.
Its stock price has slumped since a boom in early 2021. The stock was down 51% this year before Friday's jump.
Opendoor is set to report its second quarter results on August 6.
The company is expected to report a loss of 1 cent per share and revenue of $1.5 billion for the quarter, reported Benzinga.
But Jackson stated 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.
-- With inputs from Bloomberg
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
21 minutes ago
- Mint
Jane Street working on its defense against stock market manipulation allegations from Sebi, here's how
Jane Street Group LLC is expected to argue that its controversial Indian options trades were a response to outsized demand from retail investors, people familiar with the matter said. The trading giant has been working on its defense against market manipulation allegations from the Securities and Exchange Board of India. The regulator in early July alleged Jane Street had taken large positions that artificially influenced prices in the country's stock and futures markets, moving them in favor of its options bets on multiple days. Jane Street said on Monday it has sought an extension to respond to the interim order. Last week, SEBI lifted Jane Street's temporary trading ban after the firm deposited 48.4 billion rupees ($560 million) in alleged 'unlawful gains' into an escrow account. A 105-page order from SEBI detailing its preliminary findings devoted a long section to Jane Street's trading activity on Jan. 17, 2024, which was the firm's most profitable day over a roughly two-year period that the regulator scrutinized. The New York-based firm is expected to argue it was eager to facilitate options bets from the country's retail investors, knowing it would be largely unhedged, said the people familiar with the matter, who asked not to be identified discussing private information. The firm hedged less in India than in other markets and spread out its hedging activity over multiple hours on that day in January 2024 to reduce its market impact, the people said it is likely to explain. On that morning, the NSE Nifty Bank Index dropped 3.2% at the open and fell further during the day. SEBI alleged that Jane Street aggressively bought the index's constituent stocks in the cash and futures markets to manipulate the gauge's intraday levels, then reversed the trades in the afternoon to profit from a much larger bearish index options position. Jane Street is expected to say that high retail demand for options on that index was a key driver behind its trading in the morning, according to the people familiar with the matter. The firm will likely argue that individual traders bought about $4 billion worth of the gauge's stocks using options in the first half hour of trading, and that Jane Street — which was acting as a market maker — facilitated about $1 billion of that demand. Those numbers are based on net delta positions, which represent the value of cash equities the options positions are equivalent to when taking into account the derivatives' sensitivity to the underlying assets' price moves. SEBI's order said Jane Street's share purchases on that January 2024 morning represented between approximately 16% and 25% of the trading turnover for 10 of the 12 Nifty Bank Index stocks, making the firm by far the single largest net buyer. As Jane Street sold call options and bought puts, it amassed a bearish position that represented 7.3 times the size of its long cash and futures bets, according to the regulator. Jane Street is expected to argue that the high retail options demand created a gap between prices implied by the options and those reflected by the shares, and the firm sought to close it through a standard arbitrage trade, the people familiar said. The retail demand was so large that only 10% of it could have been hedged — partial hedging being a common practice among derivatives market makers internationally, the firm is expected to say. In the afternoon, Jane Street sold the stocks over more than three hours, spreading out its hedging to protect against settlement-price uncertainty as the options were about to expire, also a typical tactic globally, the people said it will argue. SEBI did not respond to a request for comment. Retail traders' enthusiasm for options has helped turn India into the world's biggest market for listed derivatives by contracts traded, with turnover of more than 300 times that of cash equities. Global trading firms have used their capital and technological edge to profit from that large imbalance, but local investors have cumulatively incurred billions of dollars in losses, leading the regulator to crack down on the trading frenzy. Critics of Jane Street say the sheer size of its positions built up over a short time would have given the firm market-moving power, even if the trades were within regulatory limits. Alexander Gerko, the billionaire founder of rival XTX Markets Ltd., has challenged Jane Street to show that its India trading strategy was 'legit' by proving it would work better after scaling it down by a factor of a 100. 'Any 'normal' strategy works worse as it scales up, due to market impact, unless your strategy IS market impact,' he wrote in a LinkedIn post earlier this month. The regulator's interim order presented serious allegations and a 'compelling narrative,' though it is not certain that Jane Street acted inappropriately based on the initial findings, said Abhiraj Arora, a Mumbai-based partner at law firm Saraf and Partners who once worked at SEBI's surveillance and investigations department. Arora, who isn't involved in the case, said too harsh a crackdown and excessive surveillance of market makers could lead to wider bid-ask spreads, poorer trade execution and increased price swings. The Jane Street case ultimately 'serves as a significant test for India's regulatory framework and its capacity to oversee increasingly complex global trading practices,' he said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
23 minutes ago
- Economic Times
Sri Lotus Developers plans to raise Rs 792 crore through IPO to fund projects
Revenue from operations, Ebitda and net profit grew 81.5%, 272.4% and 268.3% annually to ₹549.7 crore, ₹289 crore and ₹227.9 crore, respectively between FY23 and FY25. Ebitda margin expanded to 52.6% in FY25 from 12.5% in FY23. Sri Lotus Developers plans to raise ₹792 crore through an IPO to fund projects. The Mumbai-based developer boasts a high 53% Ebitda margin, exceeding peers, and operates primarily in the luxury segment. Despite geographic concentration, strong financial growth and a lower debt-equity ratio make the IPO potentially attractive for high-risk investors. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ET Intelligence Group: Sri Lotus Developers and Realty, a Mumbai-based residential and commercial properties developer, plans to raise ₹792 crore through fresh issue to fund ongoing projects and general corporate purposes. The promoter stake will fall to 81.9% after the IPO from 91.8%. The company operates at a higher operating margin before depreciation and amortisation ( Ebitda margin ) of 53% compared with 11-37% for cash balance on books is higher than net debt. But being present in just one market, it exhibits geographic concentration. Given these factors, investors with high-risk appetite may consider the in 2015, Sri Lotus focuses on redevelopment projects in the ultra-luxury segment (3BHK, 4 BHK & over 4 BHK flats and penthouses with a price of over ₹7 crore) and luxury segment (2BHK and 3 BHK flats ranging between ₹3-₹7 crore) in the western of June 30, 2025, the company has four completed projects, five ongoing projects and eleven upcoming projects. It has developed 0.93 million square feet of area consisting of both residential and commercial properties. Of this, 54% belongs to redevelopment projects and the rest is from greenfield from operations, Ebitda and net profit grew 81.5%, 272.4% and 268.3% annually to ₹549.7 crore, ₹289 crore and ₹227.9 crore, respectively between FY23 and FY25. Ebitda margin expanded to 52.6% in FY25 from 12.5% in price per square feet for Lotus Group is ₹68,000 vs ₹55,694 in the Juhu micro-market. Debt-equity ratio is 0.13 compared with 0.12-0.16 for peers. Considering the post-IPO equity and net profit for FY25, the company demands a P/E multiple of up to 32 compared with P/Es between 14 and 127 for peers including Suraj Estate Developers, Arkade Developers, Sunteck Realty, Hubtown and Mahindra Lifespaces.
Economic Times
23 minutes ago
- Economic Times
Is Aditya Infotech's IPO a risky bet for investors in a competitive market?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ET Intelligence Group: Aditya Infotech , a security and surveillance products manufacturer, plans to raise ₹500 crore through fresh equity to partly repay debt and another ₹800 crore through offer for promoter stake will fall to 77% after the IPO from 95%. The standardisation testing and quality certification (STQC) norms, which came into effect in April 2025, will affect the sale of products from Chinese companies in the internet protocol (IP) driven surveillance systems thereby increasing the addressable market opportunity for Indian this augurs well for Aditya, the extent of the benefit will take a few quarters to become clear. In addition, the company's Ebitda margin was in single digits, at 8-9% between FY23 and FY25. It indicates that the company operates in a highly competitive market. Given these factors, the IPO looks more suitable for long-term investors with high risk undertakes manufacturing and sales of its own products as well as trading of products of China-based Dahua Technology. Trading of Dahua products contributed 24.7% to revenue in FY25. This is expected to fall given the STQC norms . Trading margin is typically one-third of Aditya's own products margin. A lower trading contribution in revenue, therefore, may improve the Ebitda margin. Revenue grew 16.7% annually to ₹3,111.8 crore between FY23 and FY25. In July 2024, the company acquired control of its JV with Dixon technology in a share swap agreement with the PAT was boosted by ₹248.6 crore in FY25 as a gain on account of fair valuation of its stake in the JV, taking the total annual net profit to ₹351.4 debt was ₹231 crore in FY25 compared with ₹334.8 crore in the prior year. Net profit in FY25 includes a one-time fair value gain, which renders the trailing P/E multiple less effective. Profit before exceptional items and tax at ₹185.4 crore in FY25 was similar to ₹189.9 crore in FY24. Valuation based on FY24 numbers makes more sense. The FY24 P/E works out to be 68.7. The company does not have any listed peers.
