Opendoor CEO Admits He Wants to "Ruin the Night"of Short Sellers With This Controversial Move

Core Viewpoint - Opendoor Technologies has experienced a surge in stock price despite underwhelming earnings results, attributed to a combination of meme stock popularity and strategic corporate actions that may impact shareholders negatively [1][2]. Financial Performance - For Q3 2025, Opendoor reported revenue of $915 million, exceeding estimates of $850 million by $75 million. However, adjusted EBITDA was worse than expected at -$33 million compared to an estimate of -$24.4 million, and losses per share were -$0.08 against an estimate of -$0.07 [3][4]. Corporate Actions - Following the earnings report, Opendoor announced a plan to distribute three stock warrants for every 30 shares held by shareholders as of November 6, 2025. The strike prices for these warrants are set at $9, $13, and $17 per share [7][8]. Market Dynamics - The high short interest in Opendoor's stock, nearly 22%, combined with the warrant distribution, could lead to a short squeeze as short sellers may face increased costs and potential exits from their positions [6][9]. Risks of Dilution - Opendoor is also redeeming outstanding convertible bonds, which may lead to share dilution. If the stock price rises above the warrant strike prices and investors exercise them, further dilution could occur, potentially putting pressure on the stock price [10][11].