Opendoor Technologies Stock Rebounds Amid Strategic Moves Against Short Sellers
Opendoor Technologies (OPEN) shares surged over 3% in pre-market trading Tuesday, building on Monday's 20% rally. The rebound follows last week's selloff triggered by a disappointing Q3 earnings report and gloomy Q4 guidance. Market sentiment improved as fears of a government shutdown receded, while the company's innovative warrant dividend strategy put pressure on short sellers.
The digital real estate platform's tactical distribution of tradable warrants to shareholders has created a squeeze scenario for bearish investors. Short sellers must either return these warrants to share lenders or close their positions entirely - a dynamic that's fueling upward price momentum. Shareholders of record by November 18 will receive these instruments, which can be converted to stock or sold in secondary markets.
