News that Opendoor CEO Carrie Wheeler is leaving the firm boosted the firm’s stock worth to its third-highest stage since the run-up started at the begin of July.
The announcement was made earlier than buying and selling began on Friday morning. When the markets did open, Opendoor started the day at $3.415 per share and in early buying and selling hit a excessive of $3.485 earlier than settling again to $3.405 at 11 a.m. On Thursday, it closed at $3.04, however it opened the day at $2.29.
Wheeler’s departure as CEO in addition to board chair is efficient instantly; she’s going to keep by means of the finish of the 12 months as an advisor to the board to assist in the transition, a Securities and Exchange Commission submitting stated.
Wheeler’s resignation follows a stress marketing campaign led by institutional traders and supported by co-founder Keith Rabois, based on articles on Inman.
However, the firm stated Wheeler approached the board in mid-2025, at which era it started a succession planning course of, retaining Spencer Stuart to help.
It comes shortly after the firm cancelled a particular stockholders assembly to think about a potential reverse cut up with a view to regain compliance with Nasdaq itemizing requirements. That grew to become pointless as Opendoor has been buying and selling above the $1 per share requirement since mid-July.
“We’ve constructed a stronger, extra targeted firm, expanded our choices, and set the stage for the future — multi function of the most difficult actual property markets in historical past,” Wheeler stated in a press launch. “I imagine now’s the proper second for a management transition, and I’m assured the firm is on a robust path ahead.”
Wheeler grew to become CEO in December 2022 after serving as chief monetary officer, changing co-founder Eric Wu in that function.
In the meantime, the board promoted Shrisha Radhakrishna to president and interim principal government officer. Since final November, Radhakrishna was its chief expertise and product officer. Before then he held an identical function at LegalZoom and likewise labored for Intuit.
Eric Feder, president of LenX, Lennar Homes’ strategic investing arm, has been named lead impartial director.
“The firm is properly positioned to concentrate on its appreciable information and distinctive property in in the present day’s high-tech AI world,” Feder stated. This contains the continued scaling of Key Connections, the rollout of Cash Plus and steady enchancment of the core cash-offer enterprise.
Wheeler shall be properly compensated for her advisor providers, the SEC submitting stated.
“During the Advisory Term, Ms. Wheeler shall be entitled to obtain money compensation of $62,500 monthly upon completion of every month of providers throughout the Advisory Term, and reimbursement of COBRA premiums,” the submitting stated. “In addition, Ms. Wheeler’s excellent time-based fairness awards will proceed to vest throughout the Advisory Term, topic to Ms. Wheeler offering advisor providers pursuant to the Advisory Agreement by means of every relevant vesting date.”
The management change additionally follows the Aug. 12 downgrade of Opendoor’s stock ranking to underperform by Keefe, Bruyette & Woods analyst Ryan Tomasello.
On its second quarter earnings name, Opendoor stated it was endeavor a strategic pivot to an actual property agent led distribution mannequin.
“While excessive retail curiosity might proceed to assist valuation, we downgrade the shares to underperform from market carry out as we anticipate widening losses in 2H coupled with uncertainty from the technique pivot to weigh on the shares, which commerce close to the excessive finish of historic multiples,” Tomasello stated.
The technique has quite a few dangers which in the close to time period outweigh benefits, and so he’s advising traders to take a wait and see method to Opendoor’s stock.
“In specific, we’re cautious on the street to stabilized profitability that shall be extremely depending on adjoining providers monetization,” Tomasello stated. “Further, well-entrenched incumbents are more and more making progress on a extra vertically built-in housing transaction.”
On a GAAP foundation, Opendoor misplaced $29 million throughout the second quarter. This in contrast with losses of $85 million in the first quarter and $92 million in the second quarter of 2024.
This was helped by a rise in income, to $1.6 billion, a acquire of 36% from the first quarter and 4% one 12 months in the past.
