Meme Stock Trend Resurfaces, Sparked by Hedge Fund Manager

The phenomenon of meme stocks seems to be making a comeback, this time thanks to Eric Jackson, a hedge fund manager from Canada.

About three weeks ago, Jackson’s firm, EMJ Capital, invested in Opendoor Technologies, a company based in San Francisco. Since that purchase, the stock price has soared over 600% by July 21, reaching nearly $5. Currently, it trades around $2.40, which still marks a roughly 250% gain from a few weeks back.

“I think Opendoor is a real business,” Jackson mentioned in an interview with Bloomberg. “I didn’t expect it to become a meme stock.”

Meme stocks are those that experience rapid price increases often fueled by social media excitement, particularly on platforms like Reddit and X (formerly known as Twitter). These stocks usually don’t reflect the underlying financial health of the companies. This trend gained major traction in early 2021 when retailers drove up stock prices for Gamestop and AMC, largely influenced by investor Keith Gill, referred to as “Roaring Kitty.” Now, Jackson finds himself unexpectedly part of this phenomenon, with reports indicating his face is already mingling with images of Gill’s roaring cat.

Jackson first gained significant attention in 2015 after presenting a 99-page document urging Yahoo’s board to consider new approaches. Ultimately, Yahoo’s CEO Marissa Mayer resigned in 2017 following Verizon’s acquisition of the company.

Fast forward ten years, and Jackson is once again in the limelight, thanks to a series of posts about Opendoor on social media platform X. He mentioned his belief that the stock could reach $82 by 2028, dubbing it a potential “100 bagger,” meaning it could become 100 times its initial price.

Jackson noted that in just three weeks, he has received around 600 inquiries from investors curious about his other investment strategies.

Moreover, other stocks in Jackson’s portfolio are also gaining meme status, including crypto firms Ayren and Iren, with Iren’s shares climbing 49% this month and Cipher’s increasing by 65%.

The meme stock frenzy doesn’t seem to end there. Stocks unrelated to Jackson are also surging due to hype—Coles has risen 58%, GoPro by 78%, and Krispy Kreme by 67% just this month.