Former hedge fund manager and pharmaceutical executive, Martin Shkreli, doubled down on his bearish stance against Opendoor Technologies Inc. (NASDAQ:OPEN), drawing parallels with another retail favorite stock that has since witnessed a pullback.
OPEN stock is struggling to find support. View the charts here.
Opendoor Is ‘An Obvious Short’
On Monday, in a post on X, Shkreli called iBuying platform Opendoor “an obvious short,” adding that anyone who is long on it “should never invest again.”
See Also: Looking For The Next Opendoor? Try These 5 Stocks Eric Jackson Holds
This comes amid the stock’s 161% rally over the past month and a 1,084% rally since its 52-week low of $0.51 per share in June of this year. As a result, the stock has since been referred to as a “meme” stock, which proponents of the rally, such as fund manager Eric Jackson and crypto investor Anthony Pompliano, have both dismissed.
Shkreli doubled down on his bearish stance on the stock by drawing parallels with Newegg Commerce Inc. (NASDAQ:NEGG), another retail favorite stock that spiked 1,447% this year, before dropping 44% over the past month.
This was after Shkreli announced a short position against the company, saying that “even if the company had no costs, it would be overvalued.” On Monday, in a post on X, Shkreli highlighted the same, saying, “first NEGG, not OPEN,” before adding, “Game over losers,” hinting that Opendoor too could go the same way as Newegg.
Citron Bets Against Opendoor
Amid the retail frenzy that saw even the likes of comedian Rob Schneider getting in on the action this week, the stock is currently facing attacks from short-sellers.
Late last week, famed short-seller Andrew Left of Citron Research called Opendoor a “stock promo and a science project in how to burn money,” while listing several issues with the company’s business model, saying, “OPEN offers many ways to lose,” in a post on X.
Shares of Opendoor were down 9.17% on Monday, closing at $6.04, and are down another 0.50% in overnight trade. According to Benzinga’s Edge Stock Rankings, the stock scores high on Momentum, but fares poorly elsewhere. It, however, has a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock.
Photo: Around the World Photos / Shutterstock
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