Exclusive: Opendoor higher as retail army and Jackson try to ’Bring Back Rabois’

Investing.com -- Opendoor Technologies Inc (NASDAQ:OPEN) extended its recent rally by 11.6% on Friday after hedge fund EMJ Capital head Eric Jackson dialed up pressure on the company’s board, while softening an earlier ultimatum to appoint co-founder Keith Rabois. Jackson had warned that delaying Rabois’s board appointment could lead to a potential shareholder lawsuit as early as next Monday, but walked that back Friday morning, citing overwhelming shareholder support as a reason to pause litigation discussions.

“While I appreciate the 2 law firms who contacted me overnight on this matter, I believe such a strong market signal was sent yesterday about what OPEN shareholders want that it’s best to hold off on any further talk of legal action and see how the next few days play out.” Jackson posted on X Friday morning. Later on, the hedge fund president told Investing.com he would "reassess at the end of next week," but for now, litigation is "off the table." 

The “Bring Back Rabois” push, now nearing a critical phase, aims to bring Rabois back to Opendoor’s board to lead the search for a visionary CEO with the potential to transform the company. In video updates posted to X, Jackson revealed that Rabois has already been in direct contact with the company’s board regarding succession plans, but signaled that entrenched board behaviors may necessitate broader change.

“He has been in touch with the Opendoor Board. He has been looking into the idea of how the company can improve and recruiting the next CEO for Opendoor,” Jackson said in his video. “But it’s not a done deal... He’s been frustrated with this Board, and he sees them as people who are more into risk mitigation.” He expanded upon this idea in comments made to Investing.com, saying, "A lot of boards are like that. But I think it’s fair to say they’ve [Opendoor] let this crown jewel die on the vine these last couple of years and approved of the former CEO dumping shares at 56 cents.”

Jackson’s campaign has already yielded significant results. Under pressure from the growing retail base, Opendoor cancelled a planned reverse stock split. It also saw the resignation of former CEO Carrie Wheeler, the aforementioned chief who sold Opendoor stock near its all-time low. Wheeler’s resignation was a pivotal shift seen as validating the activist strategy and accelerating momentum behind governance reform.

Opendoor shares are up 907.4% over the past three months, including a 163.9% gain in the past 30 days and a 49.4% increase just this week. Much of the momentum has been driven by Jackson’s vocal campaign and the rapid coalescence of a retail base energized by both AI and co-founder-led restructuring potential.

Management under interim CEO Shrisha Radhakrishna has reacted with incremental engagement, including the cancellation of planned executive stock sales and the establishment of a digital retail investor hub. Jackson met directly with company leaders on September 2 to make the case for urgency and board representation, citing widespread shareholder backing for Rabois’s return.

While Friday’s momentum was briefly dented by skepticism from short-seller Citron Research labeling the company “a stock promo and a science project in how to burn money,” Opendoor still posted strong gains, signaling investor confidence in the activist-led trajectory. “Ultimately, the short reports are a distraction from the bigger picture,” said Opendoor investor Randian Capital in comments made to Investing.com. “This is the biggest Retail movement seen in years and is focused on actively creating shareholder value in partnership with the company. All eyes are now on the Board to appoint Keith. The choice is theirs: stand with the Open Army, or assist the shorts.”

Rabois declined to comment to Investing.com on the matter. Citron Research has not yet responded to Investing.com’s request for commentary.