Opendoor’s Boom and Bust: OPEN Stock Down 38% Weekly, Threatening Breakdown
Opendoor Technologies’ stock has been on a breathtaking run this summer, but sharp short-selling pressure and insider exits are testing,,,
Quick overview
- Opendoor Technologies' stock surged over 2,000% this summer, reaching a three-year high of $10.85 amid retail investor enthusiasm.
- The rally is facing challenges from short-selling pressure, particularly after hedge fund manager Martin Shkreli disclosed a short position.
- Insider selling by top shareholder Access Industries has raised concerns about the sustainability of the stock's high valuation.
- Opendoor is also grappling with macroeconomic pressures, including rising interest rates that are impacting the housing market.
Opendoor Technologies’ stock has been on a breathtaking run this summer, but sharp short-selling pressure and insider exits are testing the durability of its rally.
Retail-Driven Surge Turns Volatile
Opendoor Technologies (NASDAQ: OPEN) staged one of the most dramatic rebounds of 2025, soaring more than 2,000% after plunging to just $0.50 in June. By last week, shares had skyrocketed to $10.85 — their highest point in over three years. Much of the momentum came from retail investor enthusiasm on online forums, where excitement fueled a near-doubling of the stock in just one week.
Adding to the rally, Opendoor unveiled a leadership shake-up, bringing in Shopify executive Kaz Nejatian as CEO while reinstating co-founder Keith Rabois as chairman — moves marketed as a strategic “founder mode” reset.
Short Sellers Push Back
The surge, however, is colliding with mounting skepticism. Hedge fund manager Martin Shkreli publicly disclosed a short position, calling Opendoor “an obvious short.” His announcement sent shares tumbling 16% in a single session, extending a four-day losing streak. Shkreli’s pledge to release conversations with insiders, customers, and competitors amplified bearish sentiment, especially after his recent success shorting aTyr Pharma.
Compounding the pressure, top shareholder Access Industries unloaded 11.4 million shares worth $95.2 million, just weeks after a similar sale. This back-to-back offloading rattled investor confidence, signaling insiders may be skeptical of sustaining such lofty valuations.
Macro Forces and Housing Market Strain
Beyond trading dynamics, Opendoor faces structural challenges. Rising interest rates from the Federal Reserve have pressured the housing market and crimped transaction volumes — directly weighing on Opendoor’s model. Precious metals like platinum have also attracted capital, drawing funds away from speculative growth plays like OPEN.
Still, a potential shift could be on the horizon. Political pressure from President Donald Trump on Fed Chair Jerome Powell to lower interest rates has fueled hopes of a softer housing backdrop. If policy pivots materialize, transaction-driven firms like Opendoor could see conditions ease.
Technical Outlook: Testing Key Support
From a charting standpoint, OPEN is now approaching the 20-day SMA, a level that may serve as support after the steep retreat. If buyers can stabilize the price here, a rebound is possible. However, given the intensity of the decline, recovery may prove difficult unless broader sentiment improves.
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