Opendoor Technologies' Stock Dives After Co-Founder Calls Workforce 'Bloated'

Opendoor Technologies stock crashed 15.4% after retail investors booked profits following a 80% surge yesterday. Co-founder Keith Rabois called the workforce "bloated" and said a headcount reduction is coming. Rabois also stated that Opendoor was not a meme stock, but a healthy retail movement. A turnaround in the housing sector may be necessary for the company to recover.

Opendoor Technologies Inc. (NASDAQ: OPEN) stock experienced a significant drop of 15.4% today, following a substantial 80% surge yesterday. The decline came after retail investors booked profits, with the stock gaining more than 1,300% in the last three months. The company's new chairman, Keith Rabois, attributed the drop to the company's recent hiring practices and culture issues.

Rabois, who is also a managing director at the VC firm Khosla Ventures, stated that the company's workforce is "bloated" and that a headcount reduction is imminent. He believes that the company's current 1,400 employees are more than necessary, with over 200 employees not contributing to the company's core operations Opendoor chair says the company currently has 1,400 employees but only needs 200 of them^[2]. Rabois also criticized the company's remote work and diversity, equity, and inclusion (DEI) efforts, stating that these practices have negatively impacted the company's culture Opendoor chair says the company currently has 1,400 employees but only needs 200 of them^[2].

Despite the stock's recent volatility, Rabois maintains that Opendoor is not a meme stock. He argues that the retail movement in stocks is healthy, as it allows consumers to decide which companies to support Why Opendoor Technologies Stock Crashed Today^[3]. However, the company's future success may depend on a turnaround in the housing sector, as Opendoor's business remains unprofitable Opendoor Technologies stock surges as it names Shopify’s Kaz Nejatian as CEO^[1].

Opendoor's new CEO, Kaz Nejatian, who previously served as COO of Shopify, will focus on positioning the company as an AI-driven real estate platform. The appointment of Nejatian and the return of co-founders Keith Rabois and Eric Wu to the board of directors were announced yesterday, coinciding with the stock's surge Opendoor Technologies stock surges as it names Shopify’s Kaz Nejatian as CEO^[1]. Khosla Ventures and Wu also committed $40 million in a private investment to support Opendoor's growth initiatives Opendoor Technologies stock surges as it names Shopify’s Kaz Nejatian as CEO^[1].

Investors should consider the company's recent developments and Rabois's candid assessment of the company's workforce and culture when making investment decisions. The Motley Fool Stock Advisor analyst team did not include Opendoor Technologies in their list of top 10 stocks to buy now, suggesting that investors should be cautious Why Opendoor Technologies Stock Crashed Today^[3].