Opendoor Technologies saw a delayed post-earnings rally following the release of mixed results and a major announcement. Meme traders anticipate a potential short squeeze due to plans to issue warrants to existing shareholders, potentially leading to share dilution.

Despite underwhelming earnings, Opendoor’s stock price surged, driven by meme stock mania and recent corporate actions. An announcement post-earnings triggered speculation of a short squeeze, with CEO Nejatian discussing a plan that could disrupt short sellers, despite high short interest.

Opendoor reported Q3 2025 earnings, beating revenue estimates but missing on adjusted EBITDA and losses per share. The company is working on using AI to improve unit economics and reach profitability, but a rebound in the housing market is crucial for sustained growth.

The company’s plan to distribute stock warrants to existing shareholders could potentially lead to a nightmarish situation for short sellers. While the move may fuel a stock price surge, it also raises concerns about share dilution and potential financial risks.

Investors should tread carefully with Opendoor Technologies as the company’s recent actions could impact stock performance. While the stock initially dropped on earnings day, it quickly rebounded, driven by CEO Nejatian’s strategic moves and market speculation.

Opendoor’s management aims to disrupt short sellers with a controversial plan to issue warrants to shareholders. This move could increase share price volatility and pose risks for short sellers, potentially leading to further stock price surges and share dilution.

The Motley Fool Stock Advisor team identified top stocks to buy, excluding Opendoor Technologies. As Opendoor implements strategic changes, investors should consider potential risks and market volatility before investing in the company.

Read more at Yahoo Finance: Opendoor CEO Admits He Wants to “Ruin the Night”of Short Sellers With This Controversial Move