OPEN Jumps Overnight On CEO’s Nearly $500K Stock Buy: Retail Eyes More Gains Ahead

• Nejatian previously bought $1 million worth of stock last November.
• OPEN shares gained 2% in overnight trading.
• OPEN has dropped nearly 9% since its Thursday report, but Stocktwits sentiment inched higher, reaching ‘extremely bullish’ on Monday.

Opendoor Technologies CEO Kaz Nejatian on Monday said he bought another 100,000 shares of the company, in what appears to be the executive’s latest effort to boost confidence in a stock that has languished for months.

Based on the day’s average price, Nejatian’s purchase totals to about $483,500. Previously, he purchased $1 million worth of stock in November. Opendoor’s shares gained 2% in overnight trading heading into Tuesday.

Opendoor investor Pueo Keffer said he would match Nejatian’s purchase. Keffer is a senior managing director at Access Technology Ventures, which had a $1 billion position in Opendoor in 2021.

In the same X thread, Alpine Fox Capital founder and crypto entrepreneur Mike Alfred said he purchased 40,100 shares, which would total to about $1.9 million. Alfred bought a sizable $13.2 million in stock last week. 

The latest purchase by Nejatian and other investors comes amid an acute weakness in the stock, further pressured by the company’s earnings report released last week.

OPEN’s Q1 Recap

Although Opendoor’s quarterly report featured lengthy commentary about the improving health of its housing inventory, a leaner corporate structure, and core profitability on an adjusted basis in the coming quarters, the underlying business remained weak.

In the first quarter, revenue declined 38% year over year to $720 million – the top line has now shrunk sequentially for the past four quarters. Q1 net loss more than doubled to $173 million.

OPEN stock has fallen nearly 9% in the last two sessions after the earnings report was issued last Thursday. The stock is down 17% year-to-date and 55% from its all-time high last September.

Retail View On OPEN Remains Upbeat

Still, traders appeared to be zeroing in on the CEO’s stock purchase, shrugging off the weak fundamentals. On Stocktwits, retail sentiment for OPEN has climbed since the company’s earnings report last week, and it was ‘extremely bullish’ on Monday.

“$OPEN will likely go up 20% tomorrow following news that Kaz bought 100k shares. Just because he's rich doesn't mean he's dumb enough to throw a half a million smackers away. You don't get rich being stupid,” said a trader. 

Another wrote: “CEO stepping in with ~500K worth of shares isn’t noise — it’s alignment with conviction at current levels.”

Opendoor emerged as a top meme stock last year, surging more than 2,000% over a two-month stretch, but has been on a steady slide since September.

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