TLDR
- Opendoor stock jumped 60% in five days following major leadership changes
- Former Shopify COO Kaz Nejatian appointed as new CEO
- Co-founder Chung Wu bought $3 million in shares, boosting stake by 38%
- Company secured $40 million investment for AI-powered home transactions
- Wall Street remains bearish with $1.44 average price target
Opendoor Technologies stock surged over 2% in pre-market trading Tuesday. The rally caps a stunning five-day run that saw shares climb nearly 60%.
The explosive move follows a complete leadership overhaul at the digital real estate platform. Former Shopify COO Kaz Nejatian was tapped as the new CEO last week.
Co-founders Keith Rabois and Eric Wu are returning to the board of directors. The new leadership team plans to use artificial intelligence to revolutionize home buying and selling.
The company landed $40 million in fresh funding to support its AI strategy. This investment comes as Opendoor works to make real estate transactions faster and more predictable.
Insider Buying Shows Strong Confidence
Director Chung Wu made a massive bet on the company’s future. He purchased 451,127 shares worth $3 million at $6.65 per share.
This purchase boosted his stake by 38%. The buy marks the largest insider transaction at Opendoor in twelve months.
Over the past year, insiders bought $3.1 million worth of stock. They only sold $380,000 worth during the same period.
Company insiders control 3.3% of outstanding shares, worth roughly $222 million. This ownership level suggests management is aligned with shareholders.
Options traders are betting on more gains ahead. Call volume is outpacing put volume, showing bullish sentiment.
Unusual options activity has been detected around the stock. This often signals institutional interest before major price moves.
Financial Challenges Remain Despite Optimism
Chairman Rabois sparked some volatility with workforce comments. He called the current staff “bloated” and hinted at potential job cuts.
Despite restructuring concerns, investors are focused on long-term potential. The AI-driven approach under new leadership has generated excitement.
For Q3 2025, Opendoor expects contribution profit of $22-29 million. However, adjusted EBITDA losses are projected at $21-28 million.
These forecasts show a return to operating losses. While contribution profit stays positive, consistent profitability remains elusive.
The stock closed Monday at $9.49 per share. Options volume hit 1.15 million contracts, slightly above normal levels.
Wall Street Stays Cautious on Turnaround
Analysts maintain a skeptical view of the turnaround story. The consensus rating is Moderate Sell based on recent coverage.
Nine analysts have updated ratings in three months. The breakdown includes one Buy, three Holds, and five Sells.
The average price target sits at just $1.44 per share. This implies potential downside of nearly 85% from current levels.
Several downgrades occurred last month as Wall Street questioned the strategy. Upcoming earnings will test whether new leadership can deliver results.
Recent insider buying and leadership changes have energized retail traders. However, the path to profitability remains uncertain for the digital real estate company.
