Opendoor Technologies shares jumped about 16% on Friday following the announcement that CEO Carrie Wheeler will step down from the online real estate company.
Wheeler, who took over in 2022, said she is accelerating succession plans she had shared with the board earlier this year, citing the need for fresh leadership to guide the company forward.
“The last weeks of intense outside interest in Opendoor have come at a time when the company needs to stay focused and charging ahead,” Wheeler wrote in a post on X. “I believe the best thing I can do for Opendoor now is to accelerate my succession plans… and make room for new leadership to take the reins.”
Opendoor’s board has appointed technology chief Shrisha Radhakrishna as president and interim leader while it searches for a permanent CEO.
The leadership transition comes during a period of renewed market attention, particularly from retail investors, following a sharp rebound in the company’s stock.
Stock rebound and investor campaigns
After hitting a low of 51 cents in June—a level that placed it at risk of being delisted from the Nasdaq—Opendoor shares have surged more than sixfold.
The rebound has been fueled in part by hedge fund manager Eric Jackson, who disclosed his firm had taken a stake in the company and publicly projected it could be a “100-bagger over the next few years.”
The stock surged 16% to $3.53 in the session. It lost most of the gains and was trading at $3.24 up by around 6%.
Jackson has been outspoken on X about the company’s direction, calling for Wheeler’s departure and urging investors to “start THINKING BIG AGAIN.”
His position was bolstered earlier this week by Opendoor co-founder and venture capitalist Keith Rabois, who wrote on X that “not a single founder nor executive” from the IPO era supported Wheeler’s leadership.
The CEO change comes on the heels of Opendoor’s latest earnings report, which did little to convince some investors that a turnaround was imminent.
The company reported it expects to acquire just 1,200 homes in the third quarter, down from 1,757 in the previous quarter and 3,504 in the same period a year earlier. Marketing spending is also being reduced.
From SPAC boom to housing market headwinds
Opendoor went public in 2020 via a special purpose acquisition company (SPAC), riding a wave of investor enthusiasm driven by low interest rates and pandemic-era market momentum.
The company’s business model centers on utilizing technology to buy and sell homes for profit; however, its performance has been heavily tied to housing market conditions and mortgage rates.
Rising interest rates and soaring inflation in the years after its market debut hit the broader technology sector, but the impact on Opendoor was particularly severe due to its direct exposure to the real estate market.
From early 2021 to June 2024, the company lost 99% of its market value before rebounding in recent months.
Following Friday’s share gains, Opendoor’s market capitalization stands at approximately $2.5 billion.
The company’s ability to sustain its recovery will depend on how quickly new leadership can adapt to challenging housing market conditions while regaining investor confidence.
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