Opendoor shares are experiencing significant downward pressure as bearish sentiment builds ahead of the company’s upcoming quarterly results. A dramatic surge in short interest has created a high-stakes environment for the iBuying firm, with traders positioning for potential volatility around its November earnings announcement.
Market data reveals a substantial increase in bearish positioning, with short interest rising by 6.91% to reach 161.12 million shares. This represents 25.07% of the company’s available float, indicating widespread skepticism about the real estate technology company’s near-term prospects. At current trading volumes, it would take approximately one full day for investors to cover these substantial short positions.
Critical Quarterly Results Approach
The timing of this aggressive short selling is particularly noteworthy, with Opendoor scheduled to release its third quarter 2025 financial results on November 6. This earnings report will serve as a crucial test for the bearish thesis that has driven the increased short activity.
In response to market pressures, Opendoor has initiated a new “Financial Open House” presentation strategy. The livestreamed events aim to provide retail investors with direct access to company leadership. While these efforts generated some temporary positive momentum, they have failed to reverse the prevailing selling pressure.
Should investors sell immediately? Or is it worth buying Opendoor?
Key Market Indicators
Several factors highlight the current market dynamics surrounding Opendoor:
- Elevated Short Interest: Short positions account for over one-quarter of available shares
- Earnings Catalyst: Q3 2025 results due November 6
- Historical Volatility: The stock recorded 97 separate moves exceeding 5% during the past year
- Analyst Scrutiny: Morgan Stanley recently adjusted its price target for the company
The substantial buildup of short positions reflects a clear deterioration in market sentiment. This negative outlook has persisted despite periods of strong share performance throughout the year.
The upcoming earnings release presents two distinct scenarios for market participants. Disappointing results could validate the short sellers’ pessimistic view, while stronger-than-expected numbers might trigger a significant short squeeze as bearish positions are rapidly unwound.
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