Opendoor Stock Soars Past 11% Despite Short-Seller Attack
A weaker-than-expected jobs report fuels investor optimism for a Fed rate cut, overshadowing a critical report from Citron Research.
Shares of Opendoor Technologies (OPEN) surged more than 11% on Friday, as investors focused on macroeconomic news that could benefit the real estate technology firm while shrugging off a scathing report from a prominent short-seller.
The primary catalyst for the rally was a , which showed the economy added only 22,000 non-farm jobs in August, significantly below the 75,000 forecast. This unexpected weakness has intensified speculation that the Federal Reserve will move to cut interest rates, a development that would be a boon for the capital-intensive real estate sector. For Opendoor, lower rates could reduce borrowing costs and stimulate housing market activity, directly improving its business outlook.
The market's optimism was not dampened by a concurrent attack from short-selling firm Citron Research. In a social media post, Citron labeled Opendoor a "stock promo and a science project in how to burn money," criticizing its business model for its low margins, heavy inventory costs, and potential for shareholder dilution. as evidence that the iBuying model has "never worked."
Despite the pointed critique, investors largely dismissed the claims. The stock climbed throughout the day on unusually high trading volume, indicating strong conviction from buyers. The rally continues a dramatic run for Opendoor, whose stock has seen a massive surge year-to-date, fueled partly by speculative interest and investor hopes for a . While the prospect of a more favorable rate environment is a clear positive, the starkly divided opinion between bullish investors and critical short-sellers underscores the high-risk nature of the proptech company.