- Opendoor shares rose 1% in overnight trading, amid a broader rebound in stocks.
- CEO Kaz Nejatian said the site was “slammed” with high order volumes.
- Stocktwits sentiment for OPEN improved to ‘neutral’ even as traders debated whether home acquisitions is the best gauge of overall business.
Opendoor Technologies' weekly home acquisitions surged 36% week over week to 610, drawing praise from retail investors and notable backers such as Eric Jackson on Tuesday. Still, some retail traders on Stocktwits questioned whether the metric was the best gauge of overall business performance, particularly in light of the stock’s muted showing over the past month.
OPEN’s Mortgage Product, Ads Driving Business
Jackson, who backed Opendoor last July, said in an X post: “6 months ago, this number was 125. Critics will say they're ‘buying business’ with a 4.99% mortgage when others offer 6.2%. They said the same thing about Shop Pay. Guess who built Shop Pay? Kaz.” He was referring to Opendoor CEO Kaz Nejatian’s success with a one-tap payment product he built at his previous company.
Opendoor shares rose 1% in overnight trading, amid a broader rebound in stocks after President Donald Trump's latest comments about negotiations with Iran suggested the war could end soon.
Jackson, founder of Canadian hedge fund EMJ Capital, has previously praised Opendoor’s 4.99% mortgage product, which is well below the prevailing market rate and has drawn significant interest from both users and investors.
Meanwhile, Nejatian posted on X that the Opendoor site was “slammed” with high order volumes in response to a user comment about a glitch in the home-sale checkout process.
Opendoor emerged as a top meme stock, surging more than 2,000% in a two-month stretch last year, but has since slid steadily from September, leaving some traders frustrated. OPEN shares are down 11% year-to-date, and Stocktwits message volume for the ticker dropped by over 50% in the past week.
OPEN Showing Momentum?
Opendoor buys houses and flips them for a profit. It recently acquired Homebuyer.com to foray into the mortgage business. Although acquiring more homes shows growth in one side of the business, it may not give the best picture for the overall company, some investors argue.
Najatian has previously weighed in on the debate, arguing that supply is essential for a marketplace business, while demand can be boosted through multiple levers.
“Uber, for example, focused only on drivers. Amazon primarily on suppliers. Etc,” he said in December.
Some retail traders agree. “That's a big increase in acquisitions, soon the share price will follow,” said one, while another wrote that they have seen more Opendoor ads and “that’s definitely helping with people checking out Opendoor when selling their homes.”
On the other hand, a bearish user indicated that the stock’s bullish run had ended months ago and that investors would do better to invest elsewhere.
On Stocktwits, retail sentiment for OPEN shifted to ‘neutral’ from ‘bearish’ the previous day.
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