A Social Media-Driven Shareholder Revolution: The Logic Behind Opendoor’s CEO Ouster

TradingKey - A few years after retail investors propelled AMC and GameStop into the spotlight, the same grassroots army has turned its attention to real estate tech firm Opendoor (OPEN.US). After driving the stock from a June low of $0.51 to over $5 by August, the nature of this movement has evolved: retail investors are no longer just seeking speculative gains — they are acting like activist shareholders, demanding corporate change, with their sights set squarely on Opendoor’s CEO, Carrie Wheeler.

The campaign has been led by Canadian hedge fund manager Eric Jackson, who publicly built a position in July and boldly declared Opendoor the “next Carvana,” with a price target as high as $500. His vocal advocacy turned Opendoor into the latest “meme stock”, with its daily trading volume at one point accounting for 10% of total U.S. equity volume.

However, sentiment shifted sharply after the August 5 earnings release. Investors had hoped for major strategic updates, particularly around AI transformation, but were left disappointed. Many retail investors turned on Wheeler, criticizing her for selling shares — as part of a pre-arranged 10b5-1 plan — while the stock was still near lows, which they interpreted as a lack of confidence in the company’s future. Social media platforms erupted with calls for her resignation, some of which included misogynistic and abusive language.

Under unprecedented public pressure, Opendoor’s board announced on August 15 that Wheeler would step down immediately. The move was widely seen as a direct victory for retail investors. The company stated it would begin searching for a new CEO and emphasized that it is “listening to our community.”

Shortly after, interim CEO Shrisha Radhakrishna announced that the executive team would cancel all planned stock sales and continue to buy shares, aiming to restore confidence. Opendoor’s stock responded with another rally.

This episode marks a pivotal shift: retail investors are no longer just market participants — they are now active agents of corporate governance. By leveraging the amplifying power of social media, they have used collective sentiment to pressure boards and reshape the balance of power in traditional capital markets. What began as a speculative surge has become a shareholder revolution.