Opendoor Technologies (OPEN +0.38%) stock continued to surge higher over the last week of trading. The iBuyer real estate company's share price jumped 49.4% higher compared to where it stood at the end of the previous week.
Opendoor's valuation saw strong bullish momentum over the past week of trading due to new comments from EMJ Capital founder and president Eric Jackson -- the real estate specialist's most high-profile bullish advocate. The meme stock also got a significant boost from the latest U.S. jobs report.
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Opendoor stock soared after Eric Jackson issued new statements
Opendoor stock is now up roughly 316% across this year's trading, and bullish comments from Jackson have played a huge role in the rally. On Aug. 28, Jackson appeared on Yahoo! Finance's Opening Bid program and said that Opendoor was the "Uber of real estate." Jackson's support helped trigger another round of gains for the stock that extended into this week.
On Sept. 5, Jackson then issued comments in response to calls from retail investors to bring Opendoor co-founder Keith Rabois back to the company's board of directors to assist in the selection of the company's next CEO. Jackson pulled back on previous statements that failure to reappoint Rabois to the board could result in shareholder lawsuits but continued to advocate for the company co-founder's reinstatement.
A weak August jobs report also helped boost Opendoor
The Bureau of Labor Statistics published its jobs report for August this past Friday, and the numbers helped extend a rally for Opendoor stock. The jobs report was viewed as a key indicator that could determine whether the Federal Reserve cuts interest rates at its meeting later this month, and the figures generally supported the case for a rate reduction.
While the average economist estimate had called for 75,000 non-farm jobs to be added last month, only 22,000 jobs were added in the period. The report also arrived with a revision suggesting that net jobs in the U.S. economy actually contracted in June.
The weak jobs growth suggests that the U.S. economy may be stalling and increases the likelihood that the Fed will cut rates to stimulate activity. Lower interest rates could allow Opendoor to restructure its debt with more favorable interest payments and could create more favorable backdrops for the company's core business and stock.
