Open door CEO Carrie Wheeler said Friday that she has resigned from the online real estate company. Stocks plunged out early in the day before closing 4.3%.
Pressure began building on Wheeler, who took over the top job in 2022, as the company’s quarterly revenue report earlier this month could not be reassuring that the conversion to investors was underway. Since bottoming at 51 cents in June, the stock price has risen more than six times, which risks the company being delisted from the Nasdaq.
“The final weeks of intense external interest in Opendoor have come at a time when the company needs to concentrate and move forward,” Wheeler wrote in X’s post.
Opendoor’s business uses technology to buy and sell homes and pocket profits. In its latest revenue report, Opendoor said it plans to acquire only 1,200 units in the third quarter, starting from 1,757 in the second quarter and 3,504 in the third quarter of 2024.
Eric Jackson, hedge fund manager who led Opendoor’s Stock Jump in July, celebrated the news and said “Let’s start thinking again” with his new follower band X. Jackson said last month that he had bets at X that his company would acquire shares in the company and become “100 baggers in the coming years.”
Jackson is hoping to leave for Wheeler with X loud voices, and recently joined by Opendoor co-founder and venture capitalist Keith Rabois.
On Friday, Opendor named technology chief Srisharadakrishna as “President and interim leader” and said a search for CEO is ongoing.
Opendoor was on the SPAC waves, which were published in 2020 through a special purpose acquisition company and supported by low interest rates and market euphoria of the Covid era. The rising inflation and subsequent rising interest rates, which were all tech stocks, had a major impact on Opendoor as they were directly exposed to mortgage rates.
The company lost 99% of its value from the Trough in early 2021 until June. The profit on Friday marks the market capitalization of around $2.5 billion.
Opendoor ~ Date stock price chart.
