Opendoor Technologies Inc. (OPEN): A Bull Case Theory

We came across a bullish thesis on Opendoor Technologies Inc. on Value Degen’s Substack’s Substack by Unemployed Value Degen. In this article, we will summarize the bulls’ thesis on OPEN. Opendoor Technologies Inc.'s share was trading at $7.27 as of October 13th.

Opendoor (OPEN) has entered a pivotal phase with the return of its founding leadership, signaling a decisive shift from managerial oversight to founder-driven strategy. Co-founders Keith Rabois and Eric Wu are joining the board, with Rabois assuming the role of Chairman, bringing significant influence backed by concentrated ownership stakes from SoftBank, co-founders, and early investors. This leadership realignment is complemented by the appointment of Kaz Nejatian, former Shopify COO and experienced entrepreneur, as CEO, emphasizing Opendoor’s commitment to rapid iteration and entrepreneurial execution rather than bureaucratic management.

The transition has already energized the market, with a surge in public awareness driven in part by social media attention that has increased transaction volumes and set the company on track to outperform guidance. As part of this founder return, Opendoor is selling $40 million of common stock to Rabois and Wu, a modest dilution that aligns incentives with long-term growth objectives. The market reacted strongly, with the stock jumping from $5.86 to $8.11 in after-hours trading, intensifying pressure on the 24% of shares sold short and underscoring the potential for a significant revaluation if the company executes successfully.

While acknowledging that growth will not follow a straight line, the leadership team has laid out a roadmap for transformative initiatives and continuous catalysts to expand the company’s network across the $2 trillion housing market. The return of founders and experienced tech entrepreneurs materially improves the likelihood of Opendoor achieving its network ambitions, creating a compelling risk-reward scenario for investors who recognize the combination of secular tailwinds, market awareness, and founder-driven execution as a foundation for substantial long-term upside.

Previously we covered a bullish thesis on Opendoor Technologies Inc. (OPEN) by LongYield in May 2025, which highlighted the company’s strategic shift to broaden selling options, disciplined cost management, and strong liquidity. The company's stock price has appreciated approximately by 734% since our coverage. The thesis still stands as operational improvements continue. Unemployed Value Degen shares a similar view but emphasizes the return of founders and founder-driven strategy as the key growth catalyst.

Opendoor Technologies Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held OPEN at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of OPEN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.