In an energized push for a turnaround at Opendoor, hedge fund manager Eric Jackson has already chalked up significant victories, including the ousting of the old CEO and the return of the company’s founders to the board. Now, he is setting his sights on an unconventional catalyst that could potentially send the company’s stock soaring — the involvement of celebrity investors, particularly renowned Canadian rapper Drake.
Jackson, the founder of EMJ Capital, has recently emerged as a notable figure among retail investors, particularly after his bullish post on social media fueled a remarkable 1,500% stock rally over the summer. During a conference in New York City, Jackson hinted at Drake’s potential involvement, suggesting that the rapper could play a vital role in sustaining enthusiasm among investors.
He even took to social media, posting videos captured outside Drake’s Toronto residence, where he encouraged the artist to join Opendoor’s legion of investors. In a post from August, Jackson connected with Drake’s own narrative, stating, “He started from the bottom – well, so did we. Let’s ride.” This initiative, he noted, was inspired by his son’s idea. Jackson has employed similar guerrilla marketing tactics at the homes of other celebrities, but he seems particularly focused on attracting Drake’s attention.
At the Independent Investor Summit, Jackson expressed confidence that Drake’s investment would act as a major catalyst for Opendoor’s stock. While Drake’s representatives have indicated that the rapper holds a favorable view of the company, he has yet to publicly endorse the stock. Jackson emphasized Drake’s influence, particularly in Toronto, arguing that the rapper’s journey to fame symbolizes hope for the local community.
Retail investors have largely embraced Jackson’s campaign, showcasing optimism about the potential for Drake to become a part of the investor group. Investor Scott Findlay remarked that leveraging Drake’s popularity is an effective strategy to capture the attention of a broader audience. Describing it as a “boots-on-the-ground, guerrilla marketing campaign,” Findlay noted that Jackson’s approach is particularly appealing to an investor demographic that might not engage with traditional financial news yet wishes to participate in the stock’s trajectory.
During the event, Jackson reiterated his belief that Opendoor is not merely a meme stock but rather a “cult stock,” characterized by a dedicated following and strong growth prospects. Responding to a query from investor Anthony Pompliano about the distinction between meme stocks and cult stocks, he emphasized his disinterest in owning popular meme stocks, referring to companies like GoPro and Blackberry as “shooting stars.” Instead, he views cult stocks as those that have garnered a loyal base prior to any significant price surge, citing companies like Tesla and Palantir as prime examples. In his assessment, Opendoor fits this mold, standing out as a legitimate business addressing a critical market need.
