Opendoor Stock (OPEN) Soars as CEO Carrie Wheeler Steps Down Ahead of AI-Focused Shift
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Shrisha Radhakrishna, the former chief technology and product officer, will serve as interim CEO while the company searches for a permanent replacement. Radhakrishna, known for launching features like Cash Plus and cutting infrastructure costs, said he's excited to 'build the platform that defines the future of residential real estate transactions.'
Also, Eric Feder, a board member from LenX, has been appointed lead independent director and will oversee the selection process with support from executive search firm Spencer Stuart.
Wheeler's Exit Follows Activist Investor Push
Importantly, her departure comes after weeks of rising pressure from activist retail investors who have been pushing for a more visionary leader to align with the company's AI ambitions.
Retail investors lost patience with Wheeler, saying she lacked energy and a clear vision. Her Q2 earnings call was criticized for not putting forth a strong plan for using AI. Following this, founder of hedge fund EMJ Capital, Eric Jackson, called for her to step down, saying, 'I'm out on Carrie Wheeler. Next man or woman up.'
It must be noted that Jackson had shared a positive outlook on social media, comparing OPEN's potential to Carvana's (CVNA) rapid growth. His posts helped drive Opendoor stock's 900% rally, lifting it from $0.51 to nearly $5.
Interestingly, Jackson believes that Opendoor's large collection of data, such as home prices, photos, and agent info, could power a real estate platform built around AI.
Is OPEN Stock a Good Buy?
average OPEN price target of $1.27 per share implies 62.70% downside risk.
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