Is This AI-Powered Real Estate Stock the Next Opendoor?

Published Date : 27/09/2025 

Opendoor Technologies has surged in the market, and now, Better Home & Finance is gaining attention as the next potential 100-bagger. Here’s what investors need to know about Better and its potential for growth. 

Opendoor Technologies (OPEN) has been a sensation in the market over the past few months. The online home flipper gained significant traction as a meme stock in July, following hedge fund manager Eric Jackson's assertion that the stock, trading at around $0.50 per share, could be the next Carvana. Carvana, an online used car dealer, saw a massive surge in value, jumping more than 100 times after nearly going bankrupt in 2022.

Opendoor's momentum continued as retail investors piled into the stock, and the surrounding excitement led to significant changes in leadership. In August, CEO Carrie Wheeler stepped down, and earlier this month, the company brought in Shopify COO Kaz Nejatian as its new CEO. Co-founders Eric Wu and Keith Rabois have rejoined the board, with Rabois serving as chairman. At one point, Opendoor was up more than 2,000%, though it has since pulled back modestly from its peak.

Now, Jackson has identified another stock he believes could be the next 100-bagger: Better Home & Finance (BETR).

What is Better Home & Finance?

Better, often known by its simpler name, is a digitally native homeownership company offering a suite of products, including mortgage, insurance, and other real estate services. The company's AI technology platform, Tinman, allows customers to instantly see their available mortgage rates and get preapproved in as little as three minutes. Like Opendoor, Better aims to disrupt the massive housing market through a digital-first approach, and it has shown solid growth even in a weak housing market.

Funded loan volume increased by 25% to $1.2 billion in the second quarter, and overall revenue rose 37% to $44.1 million. However, the business is still small and unprofitable, losing $36.3 million in the second quarter. Similar to Upstart, Better makes money by originating mortgages and then selling them to investors. This position means the company could benefit from falling interest rates.

Better was founded in 2014 and went public through a special purpose acquisition company (SPAC).

Could Better Be the Next Opendoor?

The connection between Better and Opendoor seems tenuous, but the attention Jackson has garnered has turned Better into another meme stock. The stock doubled over a two-day span after Jackson began posting about it on X. He even predicted that Better could be a potential 350-bagger in two years.

The argument for both stocks is currently weak. Opendoor has never generated a profit, even during the booming real estate market of the pandemic. The business model relies on the company selling homes for more than it purchases them and collecting fees for services. With home prices already stretched, lower rates may not lead to the gains in home prices that Opendoor investors hope for.

Better, on the other hand, has not yet reached significant scale, with expected revenues of less than $200 million this year.

What Should Investors Do?

At this point, both stocks seem to be moving primarily due to meme-based reasons, and investors should expect volatility. While Opendoor's management changes might seem promising, the fundamentals of the business are still weak. Meme stocks can be risky, and piling into a stock that has already been hyped up could be more dangerous than it's worth. 

Frequently Asked Questions (FAQS): 

Q: What is Better Home & Finance?

A: Better Home & Finance is a digitally native homeownership company that offers a suite of products, including mortgage, insurance, and other real estate services. It uses AI technology to help customers get preapproved for mortgages in as little as three minutes.

Q: How has Better Home & Finance performed recently?

A: Better Home & Finance has shown solid growth, with funded loan volume increasing by 25% to $1.2 billion in the second quarter and overall revenue rising 37% to $44.1 million. However, the company remains unprofitable, losing $36.3 million in the second quarter.

Q: What is the connection between Better Home & Finance and Opendoor?

A: Both companies are digital-first players in the real estate market, and they have both gained attention as meme stocks. Hedge fund manager Eric Jackson has called Better the next potential 100-bagger, similar to how he promoted Opendoor.

Q: What are the risks associated with investing in Better Home & Finance?

A: The main risks include the company's lack of profitability, its relatively small scale, and the volatile nature of meme stocks. Investors should be cautious and consider the fundamentals before investing.

Q: What should investors consider before buying into meme stocks like Better Home & Finance?

A: Investors should consider the company's financial health, market conditions, and the potential for volatility. Meme stocks can be highly speculative, and it's important to conduct thorough research and understand the risks involved. 

More Related Topics :