ODD shares fell 30% on June 2. Short sellers moved in immediately. The borrow market has tightened dramatically as a result.
On June 1, availability dropped to just 3.7% — the tightest reading in at least a year. That means for every 27 shares already borrowed, only one remained available to lend. By June 2, availability had recovered slightly to 17.1%. That is still deeply tight territory, down 72% in a single week.
The cost to borrow has followed. CTB hit 1.59% APR on June 2, up 71% week-on-week and double the level seen a month ago. Borrowing ODD shares has become measurably more expensive with each passing day.
SI % FF climbed to 13.3% as of June 2. That is up 12.1% over the past week and 14.9% over the past month. Short sellers added positions even as the stock fell 30% in a single session — a sign of conviction, not panic.
The ORTEX short score sits at 70.6, up from 66.8 a week ago. The utilization rank is in the 1st percentile. The DTC rank stands at 19.
The immediate trigger was Q1 results. Revenue of $147.9 million beat consensus and grew 24.3% year-over-year. But management guided for a further 30% sequential revenue drop in Q1 2026, citing challenges with the company's largest advertising partner. No FY26 guidance was offered. Operating income fell 59.2% year-over-year. The market sold first and asked questions later.
Needham reiterated a Hold on June 2. Goldman Sachs cut its target from $20 to $16 in March. Multiple firms downgraded in February after prior earnings, with JP Morgan slashing its target from $59 to $16 and Truist cutting from $80 to $18.
As of Q1 filings, major holders were still building. Morgan Stanley Investment Management added 1.2 million shares. Baillie Gifford added 693,000. CEO Oran Holtzman holds 24.3% of shares. The CFO sold roughly $129,000 worth on June 1 — a modest, scheduled-looking transaction rather than a distressed exit.
The next earnings event is scheduled for August 4. That is the next hard date for the bear-bull standoff in the borrow market to resolve.
What to watch: Whether availability continues recovering above 20% or snaps back toward the June 1 floor. A second compression below 5% would signal fresh short demand entering at current prices.
See the live data behind this article on ORTEX.
Open ODD on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
