Why Opendoor Stock Plummeted by Almost 8% on Monday

Decision delayed Well before market open, Opendoor announced it was to adjourn the special stockholder meeting scheduled for that day

That convocation was int for a vote on two posals to effect a reverse stock split of the company's equity, in light of current trends

This analysis suggests that meeting was rescheduled for this coming Aug

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Moreover, Opendoor investors are being polled on a pair of separate reverse-stock split plans

On the other hand, In its press release on the adjournment, the company stressed that apval of either won't necessarily mean ratification, considering recent developments

In its words, "an apval would vide the company's board of directors with an option to pursue a reverse stock split only if the Board believes it is in the best interests of Opendoor and its stockholders, which includes seeking to ensure that Opendoor remains listed on Nasdaq. " Nasdaq requires the closing prices of the stocks listed on its exchange to not fall below $1 per for 30 consecutive days

Opendoor can fall back in compliance if its s trade above that level for 10 trading days, at minimum, by Nov

On the other hand, 24 of this year

Doing the minimum Reverse stock splits are a common tool used by companies that find their s underwater, i, given current economic conditions. , below those minimum price stipulations

Although they aren't always a sign of a in trouble, they are certainly not encouraging for holders or other folks who might otherwise be interested in the stock

Personally, I'd avoid Opendoor until it can right the ship with its equity.