Latest news with #Eric Jackson
Reuters
5 hours ago
- Business
- Reuters
Explainer: What is behind the latest rally in meme stocks?
July 23 (Reuters) - Retail investors are once again banding together to bet on highly shorted loss-making companies such as Kohl's and Krispy Kreme this week, bringing to mind the "meme stock" frenzy that gripped Wall Street four years ago. The spotlight this time around is on online real estate platform Opendoor Technologies (OPEN.O), opens new tab, struggling department store operator Kohl's (KSS.N), opens new tab, donut chain Krispy Kreme (DNUT.O), opens new tab and action camera maker GoPro (GPRO.O), opens new tab. Here is what you need to know about the latest rally. Some market participants have attributed the rally to bullish posts from EMJ Capital portfolio manager Eric Jackson on last week. Jackson said his hedge fund has built a long position in Opendoor, projecting the stock to hit $82 in the longer term. Traders were quick to target the stock, pushing it 300% higher so far this month. Its shares hit a record low of 50 cents just last month, having shed more than 90% in value since its peak in 2021. The company has racked up losses in the past 11 quarters. Retail investors have been emboldened by a sharp recovery in U.S. stocks to all-time highs as investors looked past President Donald Trump's chaotic trade policies to bet on a healthy economy and interest rate cuts from the Federal Reserve. Easing U.S. trade tensions, with top trade partners such as Japan, have also helped risk appetite. Krispy Kreme, GoPro, Kohl's and Opendoor are among a few stocks that are caught in the amateur trading frenzy, fueled by social media posts on Reddit (RDDT.N), opens new tab and These stocks have significant bearish positions, leaving short sellers singed as they roared ahead, causing what is called a short squeeze. Short interest is at 14% in Krispy Kreme and 8% in GoPro, according to data compiled by LSEG, while bearish positions on Kohl's and Opendoor were at 47.3% and 18.6%, respectively. At the same time last year, Keith Gill's posts on social media were a major trigger for the frenzy into stocks such as GameStop (GME.N), opens new tab and AMC Entertainment (AMC.N), opens new tab. A meme stock is a moniker for a company whose shares get a boost when retail traders rally around it on platforms such as Reddit, and to trigger a short squeeze. These companies have high short-interest because of their weak fundamentals and loss-making nature, but meme stock traders love them for their cheap stock price. The frenzy first burst into the open during 2021 when COVID-19 lockdowns boosted savings, policy stimulus put cash into people's pockets and extremely low interest rates pushed investors to the stock market. A proliferation of zero-fee trading apps also encouraged anyone with a smartphone to dabble in stocks. Thousands of Reddit (RDDT.N), opens new tab users on low-cost trading platforms such as Robinhood (HOOD.O), opens new tab banded together to drive up the prices of these stocks, squeezing hedge funds that had taken short positions, or bets against those shares.
Yahoo
9 hours ago
- Business
- Yahoo
Is Opendoor Stock a Buy at New 52-Week Highs?
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. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Should You Buy the Post-Earnings Dip in Lockheed Martin Stock? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! 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. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Opendoor Stock Soared More Than 40% Monday—Watch These Price Levels
Opendoor Technologies (OPEN) shares surged Monday as retail traders bid up Wall Street's newest meme stock sensation. Shares in the online residential real estate platform soared as much as 120% before giving back some of those gains as traders booked profits into the close. The stock nearly tripled in value last week after EMJ Capital founder Eric Jackson made favorable comments and members of a Reddit trading community behind the GameStop (GME) meme stock frenzy in 2021 began sharing screenshots of their Opendoor trades. The shares have soared more than six-fold from last month's low to trade at $3.21 a piece, good news for a company that faced a potential Nasdaq delisting in May because its stock traded below $1 for 30 consecutive business days. Below, we take a closer look at Opendoor's weekly chart and use technical analysis to identify price levels worth watching out for. 200-Week Moving Average Provides Resistance After bottoming out last month, Opendoor shares have surged as retail traders attempt to capitalize on the stock's momentum. The price gapped higher on Monday before running into overhead resistance around the closely watched 200-week moving average. The recent buying has occurred on record volume, signaling strong trading activity in the stock. While the relative strength index confirms accelerating price momentum, it also flashes overbought conditions, increasing the chances of near-term price swings. Let's identify two overhead areas on Opendoor's chart to watch if the buying frenzy continues and also point out support levels worth monitoring during potential pullbacks in the stock. Overhead Areas to Watch This first overhead area to watch lies at $5. This area on the chart, currently just above the downward sloping 200-week MA, may provide resistance near Monday's high and a trendline that connects a range of corresponding price action on the chart stretching back to June 2022. A decisive volume-backed breakout above this area could spark a rally toward $11. Tactical traders who anticipate follow-through buying may see this as a suitable location to lock in profits near a brief February 2022 countertrend high and a period of sideways drift in 2020. Support Levels Worth Monitoring During pullbacks in the stock, it's initially worth monitoring the $1.80 support level. Retracements to this area could attract buying interest near the November 2023 trough and a range of consolidation on the chart between June and December last year. Finally, the bulls' failure to defend this key level could see Opendoor shares revisit lower support around 92 cents. Traders may look to place buy orders in this region near the stock's prominent December 2022 swing low. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why Opendoor Stock Is Skyrocketing Today
Opendoor Technologies (OPEN) shares soared on Monday as retail investors piled into the newest meme stock. Shares of the online home buying company were up almost 95% in recent trading after nearly tripling in value last week. Opendoor stock took off last Monday after Eric Jackson, founder of EMJ Capital, announced his firm had taken a position in the company and said the stock 'could be a 100-bagger over the next few years.' The term refers to stocks that return $100 for every $1 invested. Jackson compared Opendoor with Carvana (CVNA), which appeared on the brink of bankruptcy in 2023, 'but they cut costs, stabilized, and the stock went up 100x.' Opendoor, he said, could be in the same position. Jackson forecast it will report positive EBITDA for the first time next month, which he says could revive Wall Street's faith in the stock. Before Jackson's post, Opendoor shares had lost nearly 98% of their value since closing at an all-time high of almost $36 in February 2021. If Opendoor regains the valuation it achieved four years ago, the stock should trade at $82, according to Jackson. Reddit Users Post Shots of Their Opendoor Trades Shares rose 15% last Monday and another 15% on Tuesday. The stock's gains accelerated on Wednesday as users of the Wallstreetbets subreddit—notorious for fueling the Gamestop meme stock frenzy in 2021—began sharing screenshots of their Opendoor trades. The rally has come at an opportune time for Opendoor. In late May, the company was notified by Nasdaq that its stock was at risk of being delisted because it traded below $1 for 30 consecutive business days. The company had 180 days to increase its share price to meet listing standards. In early June, Opendoor proposed a reverse stock split that would boost its share price by as much as 50x. The recent rally has given Opendoor hope of meeting the Nasdaq's listing standards, which require the stock's closing bid price to exceed $1 for 10 consecutive business days within the 180-day grace period that started at the end of May. Shares have closed above $1 in each of the last four sessions, and were trading above $4 at midday Monday. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why Shares of Opendoor Are Skyrocketing Again Today
Key Points Opendoor has become the next meme stock to watch. The improbable run continued today. EMJ Capital founder Eric Jackson continued to post bullishly about Opendoor on X, and has a big price target for the stock. 10 stocks we like better than Opendoor Technologies › Shares of iBuying real estate company Opendoor (NASDAQ: OPEN) once again soared, trading roughly 71% higher today, as of 12:18 p.m. ET. The stock continues to surge on meme-stock trading activity and bullish social media posts from EMJ Capital founder Eric Jackson. This meme stock could have legs Opendoor has caught the attention of the meme stock crowd on Reddit's WallStreetBets, and high short interest also helped catapult the stock higher this month. As of this writing, Opendoor traded close to 600% higher this month alone. Not only are retail traders in on the stock, but so is EMJ Capital founder Eric Jackson. Jackson has a history of picking stocks that have turned into multibaggers. Some of his former bets that have worked out well are Carvana, Coinbase, Roku, and Alibaba. Yesterday, Jackson tweeted another post, reiterating his position from last week that Opendoor can get to $82 per share (the stock currently trades below $4 per share). As an iBuying platform, Opendoor is in the business of purchasing homes from sellers online and in cash, and then trying to resell those homes for higher prices. In recent years, the macro-environment has proved challenging for the housing market. The iBuying model also hasn't been proven out, typically generating slim margins. Meme stocks are always very risky Opendoor is supposedly in the early stages of transitioning to more of a real estate agent-assisted model that analysts at Citizens JMP noted last month could be a more capital-efficient, higher-margin business. But the company still has a lot of work to do and is also dealing with high cash burn and high debt. With the stock now trading at a multibillion-dollar market cap and still generating significant losses each quarter, it has clearly become detached from fundamentals and is likely to be very volatile, with the potential for big sell-offs down the line. Invest at your own risk. Do the experts think Opendoor Technologies is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Opendoor Technologies make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roku. The Motley Fool recommends Alibaba Group and Coinbase Global. The Motley Fool has a disclosure policy. Why Shares of Opendoor Are Skyrocketing Again Today was originally published by The Motley Fool
