Opendoor Technologies Inc. (OPEN) shares slid more than 4% on Thursday, as the real estate tech company found itself caught between a macro data punch and rising short-seller interest.
The Bureau of Economic Analysis reported that the Core PCE price index — the Federal Reserve's preferred inflation gauge — hit 3.2% in March, accelerating from 3% in February. That's not the kind of progress the market was hoping for. Meanwhile, first-quarter GDP grew at a 2% annualized rate, missing the 2.3% economists had forecast. The combination of sticky inflation and a cooling economy is a tough one for capital-intensive real estate stocks like Opendoor.
Short sellers have been circling. Short interest in Opendoor recently ticked up from 123.39 million to 124.13 million shares, now representing about 14.45% of the float. At current trading volumes, it would take roughly 4.65 days for short sellers to cover their positions — a sign that bearish bets are piling on.
The sell-off also comes as Opendoor gears up to report first-quarter earnings on May 7. Analysts expect a loss of six cents per share on revenue of $667.54 million. That's the kind of number that keeps traders on edge.
Not everyone is bearish, though. On Tuesday, Alliance Global Partners initiated coverage on Opendoor with a Buy rating and an $8 price target — a significant premium to Thursday's $5.32 close. The broader market was actually in the green, with the Nasdaq up 0.43% and the S&P 500 gaining 0.55%, making Opendoor's slide stand out even more.
At publication time, Opendoor shares were down 4.84% at $5.32, according to market data.
