‘Pharma Bro’ Martin Shkreli Bets Against Opendoor — But Retail Traders Call It An ‘Obvious Long’ Backed By Eric Jackson

As Opendoor’s stock rallies again, investors are divided on whether the company can demonstrate long-term business improvement to sustain the current momentum. For now, at least the retail trader crowd is optimistic.

On Monday, Martin Shkreli, a former hedge fund manager and pharmaceutical executive who has served jail time for securities fraud, said "$OPEN is an obvious short." 

Meanwhile, EMJ Capital founder Eric Jackson — whose bullish remarks in July sparked Opendoor's "meme stock" rally — has stepped up his push for changes at the company, including a call to bring back co-founder Keith Rabois to its board.

About 63% of some 2,800 respondents to an ongoing Stocktwits poll have voted that they are long on the stock and back Jackson’s view. Eighteen percent side with Shkreli and expect the stock to fall, while 13% are trading solely on volatility. The rest, 6%, are avoiding it altogether.

Despite the stock shedding 9% on Monday, the retail sentiment on Stocktwits held firmly in the 'extremely bullish' zone.

After nearly 1,000% stock gains since the start of July, watchers are both amazed and jittery. On Monday, Martin Shkreli, a former hedge fund manager and pharmaceutical executive who has served jail time for securities fraud, said "$OPEN is an obvious short."

Skepticism is also bubbling up on forums like Reddit, and short interest for the stock is at over 21%, the highest to date. Last month, the company's quarterly results and outlook failed to impress, while CEO Carrie Wheeler's exit signaled that a potential turnaround is some time away.

However, in recent weeks, investors have grown bullish over prospects that a new management will drive change, while a largely expected cut in U.S. interest rates will spur the real estate business.

"The bear case for OPEN cannot be built upon previous leadership and strategy," a user said in comments to the Stocktwits poll.

"Bulls are not buying OPEN because of past earnings and the leadership of the Board and Carrie. It is a full business transformation being priced in under new board leadership of Rabois and Eric Jackson and a NEW ROCKSTAR CEO!!"

Opendoor shares are up 277% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Sam Altman’s OpenAI Weighs California Exit Amid State’s Scrutiny Of For-Profit Plan: Report

Share

·

Add us on