Pharma Bro Martin Shkreli Confirms Shorting Opendoor, Plans Public Due Diligence Campaign Into The Firm: 'I Shorted $OPEN'

Martin Shkreli has disclosed a short position against iBuying real estate company Opendoor Technologies Inc. (OPEN) at $9.36 and announced a public due diligence campaign to build a bearish case against the firm. This move, following his previous successful short on Newegg and aligning with bearish views from Citron Research, targets a stock that has surged over 460% year-to-date and attracted 'meme stock' status. OPEN's shares fell 6.06% following Shkreli's announcement, indicating a potential escalation in the ongoing battle between retail and institutional investors.

Analysis

Opendoor Technologies (OPEN) is now the target of a high-profile activist short campaign, initiated by Martin Shkreli who disclosed a short position at $9.36. This action is amplified by his stated intention to conduct a public due diligence campaign, a strategy designed to build a public bearish case by scrutinizing the company's operations through discussions with former employees and other stakeholders. The position's credibility is reinforced by the alignment with another prominent short-seller, Citron Research's Andrew Left, who has labeled the company "a science project in how to burn money." This coordinated bearish pressure is being applied to a stock that has exhibited extreme momentum, gaining 461.01% year-to-date and attracting a "meme stock" label. The market has reacted swiftly to Shkreli's announcement, with the stock falling 6.06% to $8.92. While Benzinga's own rankings note a strong price trend for OPEN across all timeframes, they also highlight a relatively weak growth ranking, suggesting a potential disconnect between the stock's technical momentum and its underlying fundamentals.

Key Decisions for Investors

• Investors should anticipate heightened volatility in OPEN, as the public battle between activist short-sellers and a strong retail following is likely to cause significant price swings.
• Monitor Martin Shkreli's public due diligence campaign closely, as any information released regarding former employees, customers, or competitors could serve as a major negative catalyst for the stock.
• Long-holders should critically re-evaluate their position, weighing the stock's powerful price momentum against the fundamental concerns raised by two notable short-sellers and the company's weak growth ranking.
• Given the stock's 461% year-to-date gain, holders may consider trimming positions to lock in profits, as the new short-seller pressure increases downside risk.