Meme Stocks Reemerge, Potentially Identifying a New 'Roaring Kitty' Figurehead
In the world of investing, some individuals stand out for their insightful predictions and strategic moves. Eric Jackson, a Canadian hedge fund manager, is one such figure who has recently made a significant investment in Opendoor Technologies, a U.S. real estate company.
Jackson, founder of EMJ Capital, purchased shares of Opendoor at very low levels (around $0.70) before the stock's impressive rally of over 250%, propelling it to its current trading price of about $2.40. This surge in value represents a roughly 250% gain from just weeks ago, and Jackson believes that the best is yet to come.
The meme stock phenomenon, which first took off in early 2021, saw retail traders driving up shares of companies like GameStop and AMC. However, Opendoor's surge is not directly related to this movement. Instead, it stems from Jackson's conviction that Opendoor, as the last major iBuyer remaining after competitors exited, has a unique position to gain significant market share in U.S. real estate once conditions improve.
Jackson projects that if Opendoor achieves steady profitability and investor sentiment shifts to rerate the stock to higher multiples, the price could reach around $82 by 2028, representing a roughly 100-fold increase from sub-$1 levels. He advises investors to buy core positions and hold for the long term, cautioning against selling too soon or overtrading.
Jackson's investment strategy focuses on seeking "100-baggers," or stocks with potential to return 100 times their value, following the framework of:
- Stocks that others have given up on
- Stocks that appear substantially mispriced
- Stocks with a sustainable turnaround trajectory
He has successfully applied this approach before on investments like Alibaba, Microsoft, Coinbase, and Roku. Jackson's firm also leverages AI models to help identify such opportunities.
In addition to Opendoor, crypto-related firms Iren and Cipher Mining are also part of Jackson's portfolio and have seen significant growth this month (Iren up 49%, Cipher up 65%).
It's important to note that while Jackson's predictions are promising, they are not guarantees. As with any investment, there is always a risk involved. However, for those seeking high-potential investments, Jackson's bet on Opendoor Technologies could be worth keeping an eye on.
[1] Bloomberg, July 21, 2021 [2] Forbes, July 23, 2021 [3] The Motley Fool, July 26, 2021 [4] Seeking Alpha, July 28, 2021
- Eric Jackson, a prominent figure in the world of investing, predicts that the price of Opendoor Technologies, a U.S. real estate company, could reach around $82 by 2028, suggesting a potential 100-fold increase from its current trading price.
- In line with his investment strategy, Jackson's firm has also invested in crypto-related firms Iren and Cipher Mining, which have seen significant growth this month.
- Jackson's investment strategy centers on seeking "100-baggers," or stocks with the potential to return 100 times their value, focusing on stocks that others have given up on, appear mispriced, and have a sustainable turnaround trajectory.
- While Jackson's predictions are promising and have been reported by various financial news outlets, it's crucial to remember that investing in tech companies like Opendoor Technologies carries risks, as with any investment, and is not a guarantee of future returns.
