TLDR
- Opendoor stock rallied 42% on Friday after Fed Chair Powell hinted at potential rate cuts next month
- The stock hit a 52-week high and broke above $5 for the first time in two years
- High-profile investors like Anthony Pompliano and Eric Jackson are driving retail enthusiasm
- Company remains unprofitable with Q2 loss of $0.04 per share, though revenue grew 4% to $1.6 billion
- Stock is up 213% year-to-date but analysts maintain a consensus Moderate Sell rating with $1.02 price target
Opendoor Technologies grabbed headlines Friday with a stunning 42% surge that pushed shares to their highest level in 52 weeks. The rally came after Federal Reserve Chair Jerome Powell’s Jackson Hole speech hinted at potential interest rate cuts next month.
The real estate platform’s stock broke above the $5 threshold for the first time in two years. This milestone helped land Opendoor as the fourth-biggest gainer among S&P 500 companies that day.
The stock became the most trending ticker on Stocktwits by Sunday evening. Retail investors flooded message boards with bullish sentiment and price targets of $10 or higher for the coming week.
“$OPEN can we see $10 by the end of this coming week?” posted one enthusiastic user among many sharing optimistic forecasts. The stock even gained nearly 4% in after-hours trading Friday, well after Powell’s speech ended.
High-Profile Backers Fuel Momentum
Anthony “Pomp” Pompliano, a prominent podcaster, has been vocal about his stake in Opendoor. He directly credited Powell’s openness to rate cuts as a major catalyst for the company’s surge.
Eric Jackson, founder of EMJ Capital, has also been championing the stock publicly. Jackson sparked a previous rally last month when his bullish comments led to a 200% jump over four trading days.
Jackson argues that while Opendoor already has several positives working in its favor, potential rate cuts would be “nice to have in the back pocket.” His commentary has helped fuel online discussions that often drive meme stock movements.
The company is also searching for a new CEO after its previous chief executive resigned. Retail investors view this upcoming appointment as another potential catalyst for the stock price.
Financial Reality Check
Despite the excitement, Opendoor’s business fundamentals remain challenging. The company posted a loss of $0.04 per share in its second quarter, slightly worse than the $0.03 loss analysts expected.
Revenue did provide a bright spot, growing 4% year-over-year to reach $1.6 billion. This beat Wall Street estimates of $1.5 billion for the quarter.
The real estate buying and selling platform remains unprofitable overall. Its business model faces particular sensitivity to housing market weakness and elevated mortgage rates.
Analysts believe the current stock surge stems more from speculative momentum than improving company fundamentals. The consensus rating among seven Wall Street analysts stands at Moderate Sell.
The average price target sits at just $1.02, implying nearly 80% downside from current levels. This rating includes one Buy, two Hold, and four Sell recommendations issued over the past three months.
Opendoor shares have gained 213% year-to-date, far outpacing the roughly 11% returns of major market indexes. The stock’s recent performance has been driven largely by social media buzz and influential investor commentary rather than traditional financial metrics.
