Eric Jackson Eyes Turnaround, Opendoor Shares Jump

Shares of Opendoor Technologies Inc. (NASDAQ: OPEN) rose 15.5% on Tuesday, aided by a jump in retail investor enthusiasm and activist sentiment.  The surge follows a series of public comments by EMJ Capital Founder Eric Jackson, who expressed an interest in engaging in shareholder activism to unlock what he regards as tremendous upside for the iBuyer platform.

Jackson, who had previously abandoned his activist stance following his campaign with Yahoo, made his intentions apparent in a series of pointed social media statements.  "But if standing between a 50¢ stock and a $82 one is what it takes — and shareholders want it — I'll saddle up again for OPEN," Jackson wrote on X.com. 

He rejected the idea of a quick purchase or capital restructuring as insufficient, instead advocating for operational execution.  "You can't get to $82 through M&A.  "You get there by grinding, executing, and proving the model," he explained.

Opendoor, which has struggled in the face of rising interest rates and dwindling housing activity in the United States, has recently gained traction among retail investors and hedge funds.  Jackson was blunt in his appraisal of Opendoor's leadership under current CEO Carrie Wheeler, urging her to take greater steps to exhibit trust in the company. 

"And it would be nice if she bellied up to the bar and bought a slug of stock here on the open market the way Ernie Garcia did," Jackson joked.  He also presented a step-by-step strategy for Wheeler to restore investor confidence, which included canceling any plans for a reverse split and welcoming co-founder Keith Rabois back into the fold.

Rabois, a major figure in the startup world and outspoken critic of the company's approach, shared Jackson's pessimism.  "She is completely incompetent."  She was a mediocre CFO.  Rabois responded to the conversation, saying that CFOs should never lead tech companies. 

Other investors, notably Randian Capital, have expressed support for Jackson's thesis, citing lowering inflation statistics as a possible tailwind for Opendoor's core business.  "We feel that OPEN has a lot of upside at present prices.  We would highlight that rates are falling; it's only a question of time," the business stated on Tuesday.  Randian also mentioned Opendoor's potential as an early adopter of cryptocurrency payments, following the announcement that Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC) will accept cryptocurrency as an asset in mortgage loan assessments. 

Randian Capital told Investing.com that Opendoor is well-positioned to gain from lower interest rates and reduced competition in the iBuying industry.  Since the company is "optimistic current management can execute on the opportunity ahead," it additionally stated: "If not, we hope the appropriate operators are brought in to do so, which could include someone from the founding team with the right vision."