3 market experts tell us why they question the shares of Mim

• OpenDoor is the meme Breakout stock for this season.

• Eric Jackson, the hedge fund manager, activated an army of retrieves accumulating in stocks.

• Three positives in the market tells us why they doubt the gathering.

rise OpenDoor Technologies It was the largest story in the retail circles throughout the summer.

Since the beginning of July, when the hedge of the Erik Jackson’s hedge fund published to him The upcoming expectationsThe shares of the real estate company online increased by more than 1,600 %, as it increased from less than one dollar to the share to $ 10.28 on Friday.

Jackson reported the shares as the ability to become 100 steams, and compare it with CarvanaAuto trader used for the patient who helped revive him in 2023. Jackson set a targeted price for OpenDoor at $ 82 per share.

While retail merchants Certainly on board the planeSome institutional investors do not share Jackson optimism.

William Reed Collip, the founder and president of Tagston Capital, believes that the target price of Jackson is very aggressive, given the company’s current basics.

“To reach $ 82, the company will need to trade from 10x revenues, a level usually dedicated to high -growth high -growth SAAS companies instead of intensive capital housing platforms,” ​​Business Insider told Business Insider.

CULP said that OpenDoor revenues decreased in recent years, as it decreased from 15.6 billion dollars in 2022 to $ 5.1 billion in 2024. He added that its profits are still negative and that unanimity estimates still show losses per share until 2026.

While he said that the momentum of the retail trade can lead to a random gathering or short pressure, similar to the one that paid another Mim shareS example Gamestop or AMC EntertainmentCulp still believes that OpenDoor is unlikely to achieve revenues that will support Jackson’s price goal

“In order for OpenDoor mainly $ 82 per share, either revenues will need to increase many complications above today’s levels or investors need to coordinate them with significantly higher complications than it is historically typical of this commercial model.”

Daniel Postamanti, director of information at Bustamante Capital Management, is much more than that in OpenDOr. In his opinion, the dynamic is similar to the height of shares in Gamestop.

“If this was in reality, it was about it, we will see a road map that was developed through the administration the details of the strategy,” he said.

“This might circulate, but it will do so on the pure momentum of unknown retail investors and games in the basic options markets, and the idea that the” great fool “theory works.”

Bob Lang, the chief option analyst in Explosive, is more optimistic, although he still doubts the $ 82 goal. He pointed out that although OpenDor has benefited from the retail interest, the broader economic trends may make the gathering not sustainable.

“If the wheels come out of the economy, investors will not listen to the Sage investors, but just searching for the exit because stocks like Open will fail the door in their faces,” he said.

Lang has acknowledged that if the housing market begins to recover in the near future, OpenDoor may easily benefit from the flow of sale activity. However, he added that the company’s share price is no longer cheap.

He said: “With a maximum market limit of $ 7 billion and the rate of revenue in individual numbers (OpenDoor) has a lot to prove it.”

In addition, Lang’s optimism about OpenDoor depends on interest rate discounts, which stimulates a significant growth in housing, which is the result of Some commentators say It is unlikely in the short term.

Read the original article on Business Insider