Opendoor’s stock saw a remarkable surge of over 75% during Thursday’s trading session, driven primarily by the announcement of a new leadership change at the company. The iBuying platform revealed it has appointed Kaz Nejatian, the former Chief Operating Officer of Shopify, as its new Chief Executive Officer, filling the void left by the resignation of Carrie Wheeler in mid-August.
The leadership transition has stirred enthusiasm among investors, propelling Opendoor’s stock price above $10 for the first time since early 2022. Nejatian’s appointment comes amid significant scrutiny and pressure from investors, including activist investor Eric Jackson, who had vocally criticized Wheeler’s leadership prior to her departure. Jackson initiated a bullish sentiment around Opendoor in July, boldly suggesting an $82 price target for the stock, which at that time was trading under $1.
In a statement regarding the hiring, Opendoor co-founder Keith Rabois expressed his confidence in Nejatian’s capabilities, asserting that there was “literally only one choice for the job.” Rabois believes Nejatian is an ideal leader to harness Opendoor’s distinct data and assets, stating that the company is set to evolve into an AI-first enterprise.
Alongside Nejatian’s hiring, Opendoor has also made adjustments to its board of directors, appointing Rabois as chairman and reappointing Eric Wu, another co-founder who had been away from the board since 2022. However, board members Pueo Keffer and Glenn Solomon have stepped down as part of these organizational changes.
The iBuying platform, known for utilizing algorithms to facilitate home-flipping, previously faced a tumultuous period as its stock plummeted from over $30 to below $1 earlier this year. However, recent developments indicate a turnaround, highlighted by Opendoor’s first quarter of positive adjusted EBITDA reported in the second quarter of this year. As a result, the company’s stock has skyrocketed over 840% in the past six months.
Investors and leaders alike, now including Nejatian, are optimistic that Opendoor can leverage AI-driven technology and innovative strategies, such as collaborating with traditional brokers, to capture market share and achieve sustainable profitability. Nejatian himself commented on his transition to Opendoor, expressing a commitment to applying a “platform mindset” to build a robust platform for homeownership. He aims to unlock opportunities for families and strengthen societal structures through this mission.
