Why Opendoor Technologies Stock Crashed Today

Core Insights - Opendoor Technologies experienced a significant stock surge of 80% following the appointment of a new CEO, Kaz Nejatian, but shares later fell by 15.4% as investors took profits [1][5]. Company Overview - The company has reinstated co-founders Keith Rabois and Eric Wu to the board, indicating a shift in leadership dynamics [3]. - Rabois criticized the current workforce of 1,400, labeling it as "bloated" and indicated that over 200 employees may be laid off due to redundancy [3]. Company Culture and Strategy - Rabois emphasized the need to return to a collaborative, in-person work culture, which he believes is essential for innovation [3]. - He stated that the company was not a meme stock, despite its stock price increasing over 1,300% in the last three months, attributing the retail investor movement as a healthy trend [4]. Market Context - The company is currently unprofitable and requires a turnaround in the housing sector to improve its financial situation [4][5]. - Retail investors are currently booking profits after the recent stock surge, indicating a potential shift in market sentiment [5].