TLDR
- CEO Carrie Wheeler stepped down immediately on Friday, with CTO Shrisha Radhakrishna named interim leader
- Stock jumped 4% on the news, capping a week where shares gained 68.7%
- High short interest of 23% has turned OPEN into a meme stock favorite among Reddit traders
- Company received Nasdaq delisting warning in May for trading under $1 for 30+ days
- Opendoor has never posted a profitable quarter since going public via SPAC in 2020
Opendoor Technologies saw another wild day of trading Friday as the real estate platform announced CEO Carrie Wheeler’s immediate departure. The stock closed 4% higher at $3.17 after surging as much as 16% during the session.
Wheeler, who took the helm in December 2022, stepped down from both her CEO and board chair positions without explanation. Chief Technology and Product Officer Shrisha Radhakrishna was quickly tapped as interim president while the board searches for a permanent replacement.
The leadership shake-up comes as Opendoor has become the latest darling of meme stock traders. Shares have rocketed over 200% in the past month alone, fueled by retail investors on Reddit’s WallStreetBets forum and institutional backing from EMJ Capital.
Investor Pressure Mounts
The timing of Wheeler’s exit wasn’t random. EMJ Capital founder Eric Jackson and other shareholders had been publicly pressuring for leadership changes in recent weeks. Even company co-founder Keith Rabois joined the chorus, stating that no founder or original executive supported Wheeler’s continued leadership.
“Not a single founder nor executive who built Opendoor to an IPO or billions of free cash flow or $18 billion of market cap supports Carrie as CEO,” Rabois said, also taking aim at board member Pueo Keffer.
The pressure intensified after Opendoor’s latest earnings call, which Jackson called “really awful” in terms of communication from management. The stock had plunged 20% following disappointing guidance despite beating quarterly expectations.
Wheeler’s tenure was marked by consistent losses and operational struggles. She replaced co-founder Eric Wu in late 2022, having previously served as CFO and board member.
Meme Stock Mechanics
Opendoor’s transformation into a meme stock stems from its hefty short interest of roughly 23%. This high level of betting against the company has created perfect conditions for a short squeeze, where rapid buying forces short sellers to cover their positions.
EMJ Capital’s Jackson announced his firm’s long position in mid-July, adding institutional credibility to the retail trading frenzy. The combination has sent shares on a roller coaster ride with massive daily swings.
The stock hit a new 52-week high of $3.29 this week, a remarkable turnaround for a company that faced potential Nasdaq delisting just months ago. In May, Opendoor received a warning for trading below $1 for more than 30 consecutive days.
Despite the recent surge, long-term investors remain underwater. Anyone who bought $1,000 worth of shares five years ago would have just $297 today, highlighting the stock’s volatile journey.
The company’s iBuying model involves purchasing homes directly from sellers, making repairs and improvements, then reselling them for a profit. While innovative in concept, Opendoor has struggled to execute profitably at scale.
Last quarter showed the ongoing challenges. Revenue hit $1.6 billion, but gross profit managed only $128 million. The company posted a $29 million net loss for the quarter and a $300 million loss over the trailing twelve months.
The debt required to finance home purchases creates a capital-intensive cycle that limits growth potential. Higher interest rates have made this model even more challenging, though recent inflation data has boosted hopes for Fed rate cuts.
Leadership Search Continues
The board’s CEO search actually began in mid-2025, suggesting Wheeler’s departure was planned rather than sudden. Radhakrishna brings technical expertise to the interim role, having overseen the platform’s technology and product development.
Finding the right permanent leader will be crucial as Opendoor navigates both its operational challenges and newfound meme stock status. The next CEO will inherit a company with strong brand recognition but persistent profitability issues.
Trading volume has exploded during the meme stock rally, with daily sessions seeing massive swings. Thursday’s session included both double-digit gains and losses within hours.
The company’s stock remains up about 100% year-to-date despite all the turbulence. Recent inflation data showing steady 2.7% annual growth has boosted investor optimism about potential Fed rate cuts in September.
Radhakrishna takes over a company at a crossroads between meme stock momentum and fundamental business challenges. The interim leader will need to balance satisfying excited retail investors while addressing the core profitability issues that have plagued Opendoor since its public debut.
