Opendoor Technologies Sees 500% Surge in Stock Price
Opendoor Technologies (NASDAQ: OPEN), a real estate e-commerce company, has experienced a remarkable stock price increase of over 500% in less than a month. This surge was triggered by hedge fund manager Eric Jackson’s announcement of an investment in the company and a projected price target of $82 per share.
Founded through a SPAC merger in late 2020, Opendoor has struggled in a slow housing market characterized by rising interest rates and high home prices, which have adversely affected its core iBuying business model. Following significant losses, investor interest has reignited following Jackson’s optimistic outlook and comparisons to Carvana’s recovery.
Analysts note that while Opendoor presents enticing upside potential, the uncertainty surrounding its business model contrasts sharply with the more stable growth outlook of Amazon (NASDAQ: AMZN), which boasts a market capitalization of $2.4 trillion and projected earnings growth of 21% annually over the next three to five years.
