That’s likely why Opendoor Technologies Inc. spiked by 8% to 10% on Friday. This jump followed the sudden resignation in August of CEO Carrie Wheeler. The announcement of Wheeler’s departure comes in response to mounting pressure from investors, particularly after the company’s recent quarterly earnings report failed to meet expectations.
Opendoor’s real estate betting began hitting the market in 2020 when the company went public via SPAC. At first buoyed by low interest rates and the frenzied spike in the Covid-era housing market, as quickly as that light shined, the company’s fortunes turned heartbreakingly bad. From early 2021 to its lowest point in June 2022, its stock collapsed, a 99% loss, down to as low as 51 cents. As it now stands, Opendoor’s stock had skyrocketed too—up more than sixfold from its nadir. This remarkable ascent has buoyed the company’s market cap to approximately $2.5 billion.
Following Wheeler’s resignation, technology chief Shrisha Radhakrishna was appointed as president and interim leader. The company released an announcement that it is in the process of recruiting a new chief executive officer to guide its future efforts.
The spotlight on Wheeler became even hotter once major investors, such as Keith Rabois, co-founder of Opendoor, spoke out against her leadership. Rabois stated that “not a single founder nor executive” who guided the company to its IPO supports her role as CEO. Jason Jackson, a recent investor and Opendoor Board member, is bullish on the prospects of his company and thinks it has the potential to be a “100-bagger in the next few years.”
Wheeler herself recognized the hunger for change in her own statement about her resignation. She reflected on the increasing outside attention on Opendoor, and how critical it was in that formative moment to stay disciplined and focused.
“I believe the best thing I can do for Opendoor now is to accelerate my succession plans that I shared with the Board mid-year and make room for new leadership to take the reins.” – Carrie Wheeler
The social media company’s public debut has been floundering recently due to the fact that its stock price has sunk below its initial public offering price. This drop threatens to delist them from the Nasdaq. With Opendoor still in this transition period and faced with further economic headwinds, the real challenge ahead will be shoring up their business and investor confidence.