Opendoor Attacked By Short Seller—Stock Pops Anyway
Opendoor Technologies, Inc. (NASDAQ:OPEN) faced criticism from Citron Research, which labeled it a "stock promo" and criticized its business model. Despite this, Opendoor's stock rose over 8% on heavy trading volume, reflecting investor resilience. The stock has surged more than 420% in the past six months. Citron also highlighted LoanDepot, Inc. (NYSE:LDI) as undervalued, suggesting a $5 per share valuation for its mortgage servicing division. At the time of publication, Opendoor shares were trading at $6.45.
Citron Research, led by famed short-seller Andrew Left, targeted Opendoor Technologies, Inc. (NASDAQ:OPEN) in a social media post on Friday. Opendoor investors shrugged off the attack, and the stock climbed.
- OPEN stock is running again. See the real-time chart here.
Citron called Opendoor a "stock promo and a science project in how to burn money" while promoting its more favorable view on loanDepot, Inc. (NYSE:LDI).
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Citron continued bashing Opendoor's business model, saying:
"OPEN offers many ways to lose:
– No way to capitalize on AI to scale margins or defend share.
– Housing is low margin — a 1–2% swing wipes out profits.
– Capital heavy — billions tied up in inventory with no guarantee of resale.
– Competition — Zillow already tried & failed at this model.
– And with its cash burn, expect massive dilution soon.
The business model is not broken….it has never worked."
Citron will continue to update the market on $LDI and its march higher….but in the meantime let's go back to the roots.
— Citron Research (@CitronResearch) September 5, 2025
Unlike $LDI, which is undervalued and offers many ways to win, $OPEN is nothing more than a stock promo and a science project in how to burn money.$OPEN…
Opendoor investors largely brushed off the comments as OPEN shares dipped initially, but rebounded quickly.
The stock was up by more than 8% on very heavy trading volume Friday, according to data from Benzinga Pro. The retail investor-led rally has driven Opendoor stock up by more than 420% over the past six months.
LoanDepot shares also rallied following Friday's posts from Citron Research stating the market is pricing LDI like a "busted originator," ignoring its valuable mortgage servicing division.
The firm placed a $5 per share valuation on that division alone, more than double the stock's recent trading price.
OPEN Price Action: According to data from Benzinga Pro, Opendoor shares were up 8.27% at $6.45 at the time of publication Friday.
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