Anthony Pompliano Is Buying Opendoor Stock. Should You?
Opendoor (OPEN) remained in focus on Aug. 13 after Anthony Pompliano, an influential crypto investor, said he has loaded up on shares of the digital real estate company.
In a X post on Wednesday, the blockchain evangelist said he “looks forward to participating in the conversation about how Opendoor can accelerate business and transform the residential real estate market.”
Opendoor stock has recently been in favor with meme stock enthusiasts. The retail frenzy pushed it from $0.50 to nearly $3 in July. However, it has pulled back since then and is currently trading near $2.40.
Could Pompliano’s Investment Boost Opendoor Stock?
Pompliano’s investment in OPEN shares is significant because it injects credibility, visibility, and momentum into the narrative.
As a high-profile investor with a large following, his endorsement could amplify retail interest and validate the company’s tech-driven real estate model.
Last month, the founder of EMJ Capital – Eric Jackson – also said Opendoor stock could be the next Carvana (CVNA), adding the digital real estate stock could eventually be worth as much as $82.
In a volatile market, such attention can attract fresh capital and speculative enthusiasm, especially among meme stock traders who thrive on social buzz and perceived insider conviction.
Why OPEN Shares Remain Super Risky to Own
Despite high-profile backings, investors should remain wary of investing in Opendoor shares here.
Why? Because the Nasdaq-listed firm is grappling with revenue declines and profitability remains elusive. Plus, the company has significant debt that restricts it from scaling operations as well.
In fact, had it not been for the recent meme stock rally, OPEN shares were destined for a reverse stock split just to remain list on Nasdaq.
Wall Street Recommends Caution on Opendoor Technologies
Note that the aforementioned concerns are not lost on Wall Street analysts either.
According to Barchart, the consensus rating on Opendoor stock currently sits at “Hold” only with the mean target of $1.11 indicating potential downside of more than 50% from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.