Shares of Opendoor Technologies ( OPEN -15.15%) dropped for a second consecutive session today, following hedge fund manager Eric Jackson’s apparent encouragement of a shift toward Better Home & Finance after he identified it as his next potential 100-bagger on X yesterday.
Opendoor, which had soared over 2,000% in the past three months amid a meme stock frenzy, continued to lose ground and was down 10.9% as of 10:22 a.m. ET（UTC+8）. Meanwhile, Better Home & Finance saw its shares climb 27.5% at that same moment.
Image source: Getty Images.
Is Opendoor’s momentum running out?
Jackson has played an unofficial leadership role in Opendoor’s meme stock rally, initially sparking the surge by suggesting Opendoor could follow in the footsteps of Carvana, which has multiplied its value more than 100-fold since narrowly avoiding bankruptcy nearly three years ago.
The explosive rise in Opendoor’s stock over the last quarter demonstrates that his thesis resonated with investors, even leading to a change in company leadership. Still, Opendoor’s underlying business fundamentals remain unchanged, and eventually, those will come into play.
Although declining mortgage rates could benefit Opendoor, that alone won’t be enough to turn a profit.
What lies ahead for Opendoor?
Since taking over as CEO last week, Kaz Nejatian has been actively promoting the company on social media and highlighting recent changes.
Opendoor has now expanded its offerings to all 50 states, up from its previous presence in just 50 markets, and Nejatian mentioned on X last night that a new and exciting product will be launched in the coming week.
Opendoor is undergoing changes, but it will take time before these are reflected in its business performance. While skepticism about the online home-flipping model persists, investors are eager to see what Nejatian can deliver in terms of innovation.
