Eric Jackson, founder of EMJ Capital in Toronto, joined the strategic journey. He is refocusing his investment strategy to the era of artificial intelligence and the rebound to come for Opendoor. His recent decisions come on the heels of enormous liabilities that have plagued his fund. Opendoor has had a hard time too, seeing their revenue and number of homes sold drop in the past several quarters.
Jackson was ready to level up his stock-picking strategy. In order to do this, he formed a small team of developers to develop cutting-edge artificial intelligence models. His team is still very small; he now has just four staff on his team. Collaboratively, they sharpen investment strategies and identify the biggest emerging market opportunities.
Jackson’s confidence in Opendoor remains evident. He even recently predicted that the stock could reach $82, acknowledging the lofty price given the company’s continued pain. “Like Carvana, Opendoor can prove that it can permanently turn the tide and get to sustained profitability,” he stated, emphasizing his belief in the firm’s potential for recovery.
The investor bet big on Opendoor. They are more worried after witnessing a drop in their time to close revenue and home sales in the first quarter from last year. Jackson’s bulk of purchases occurred when Opendoor’s stock traded in the 70s and 80s, pricing that he refers to as “cents.”
Beyond direct stock purchases, Jackson has used options as part of his investment strategy. Third, he’s betting on an outside analysis that forecasts Opendoor’s revenue to grow to $11.5 billion by 2029. He thinks the company’s market multiple will one day get re-rated, leading to big upside.
Jackson’s investment strategy has made a major pivot since the 2022 debacle. That year, he experienced a high-profile collapse when his biggest client withdrew all their assets under management. This big change immediately drove him to find other ways to select stocks. He recounted this experience in a thread on X, formerly known as Twitter, where he candidly acknowledged, “Translation: he fired me for losing him too much money.”
Since then, his firm has tested many different models. Some proved successful, and others definitely did not work. Robertson’s new approach Despite the failure of these experiments, a few key lessons learned helped shape his current efforts. Jackson’s reputation for identifying early rebound stories has been enhanced by his success with Carvana, a company that faced significant challenges before finding its footing again.
After a tumultuous start, Jackson has skyrocketed to close to 50k followers on X. He regularly posts useful tips, tricks, and information on his experience as an investor. The recognition that he made deep and long-lasting mistakes aside, you don’t get the billionaire status without being singularly focused on the profitable investment decision.
I need to continue to pick great stocks,” he said. If I don’t, my business will be lost for good.