Opendoor Faces High Short Interest Ahead of Q3 Earnings
Opendoor's shares are facing intense selling pressure, with short interest surging to 25.07% of the company's tradable stocks. Short sellers hold 161.12 million shares, betting against the real estate company ahead of its earnings release on November 6. The high short interest could take a full day to cover at current trading volumes, indicating a bold gamble by short sellers.
Opendoor will unveil its third-quarter 2025 results on November 6, with investors anticipating a revenue decline and negative EBITDA due to challenging real estate market conditions. However, the company's strategic shift from pure iBuying to a platform with partner agents is expected to show early positive effects. The Q3 earnings will be a crucial test of the new strategy's sustainability, following Q2's $1.6 billion revenue and first positive adjusted EBITDA since 2022 of $23 million. Investors will also scrutinize management's transparency during the novel live-stream 'Financial Open House' presentation.
The current market dynamics highlight extreme volatility, with short sellers' massive positioning representing a significant risk. Weak earnings results could validate short sellers' bets, while strong figures might trigger an explosive short squeeze, leading to a rapid increase in the stock price.
Opendoor's earnings release on November 6 will be a pivotal moment, with high short interest and extreme market volatility setting the stage for potential significant price movements. The company's strategic shift and management's transparency will be under close scrutiny, as investors and short sellers alike await the results.
