TLDR
- OPEN stock exploded 500% in three months after Eric Jackson’s 100x potential claim sparked retail buying
- Interim CEO bought 30,000 shares – first insider purchase since December 2021
- New Cash Plus feature launches as company pivots to AI-powered platform
- Revenue up 4% but gross margins compressed to 8.2% with continued losses
- Analysts maintain sell ratings with $1.02 price target implying 77% downside
Opendoor Technologies has delivered one of 2025’s most explosive stock rallies. The digital real estate platform rocketed from under $1 to nearly $5 per share in just three months.
The surge began when professional investor Eric Jackson started buying OPEN shares in July. Jackson publicly claimed the stock had 100x potential from its sub-dollar price.
His social media influence helped spread the thesis across retail trading forums. The former penny stock went parabolic, likely experiencing multiple short squeezes.
Jackson believes Opendoor is undervalued due to reduced iBuying competition. The business model involves buying homes directly from sellers and flipping them for profit.
This strategy collapsed when home appreciation stagnated in 2022. Opendoor burned massive cash during this downturn.
Leadership Shake-Up Energizes Investors
CEO Carrie Wheeler resigned in August, with CTO Shrisha Radhakrishna taking over as interim leader. The leadership change has boosted investor confidence.
Radhakrishna purchased 30,000 OPEN shares worth $128,340. He bought 28,400 shares at $4.27 and 1,600 at $4.42.
This marked the first insider purchase since December 2021. Such moves typically signal executive optimism about company prospects.
Radhakrishna is transitioning Opendoor from pure iBuying to an AI-powered, multi-product ecosystem. He calls AI a “core building block” for future growth.
New Features Launch Despite Financial Struggles
Opendoor launched Cash Plus, giving sellers cash advances on homes. The company fixes properties and shares profits if sold at premiums.
This reduces inventory risk while creating seller flexibility. The feature represents Opendoor’s push to expand beyond traditional iBuying.
However, financial performance remains weak. Last quarter saw 4% revenue growth but gross margins compressed to 8.2%.
The company posted another net loss and projects continued losses next quarter. Opendoor has burned $300 million over 12 months and never achieved profitability.
Interest expenses consumed 33% of gross profit last quarter despite declining inventory levels. The debt burden continues pressuring margins.
Wall Street remains bearish despite the rally. Analysts maintain a sell consensus with one buy, two holds, and five sells.
The average price target sits at $1.02, implying 77% downside from current levels. Analysts question rally sustainability given profitability challenges and high costs.
OPEN stock gained over 100% in the past 30 days alone. The 260% six-month rally reflects retail enthusiasm and hopes for interest rate cuts.
