TLDR
- Opendoor Technologies stock surged 78% after naming Shopify veteran Kaz Nejatian as CEO
- Co-founder Keith Rabois returns as chairman following investor pressure campaign
- Stock hits 52-week high with 500%+ year-to-date gains despite housing market challenges
- Company adopts “founder mode” strategy with original leadership team returning
- New CEO promises AI integration to transform home buying and selling process
Opendoor Technologies stock exploded 78% Thursday following the appointment of former Shopify executive Kaz Nejatian as CEO. The real estate technology company also brought back co-founder Keith Rabois as chairman of the board.
The leadership changes represent a complete turnaround for Opendoor after months of investor pressure. Former CEO Carrie Wheeler resigned in August following a vocal campaign led by hedge fund manager Eric Jackson and Rabois himself.
Shares hit a 52-week high and continued the stock’s remarkable 2025 performance. Opendoor has gained over 500% year-to-date, making it one of the market’s biggest winners despite trading below $1 earlier this year.
Founder Mode Strategy Returns
The company announced it’s entering “founder mode” by bringing back its original leadership team. Eric Wu, who served as Opendoor’s first CEO before stepping down in 2023, also rejoined the board of directors.
This strategic shift comes as the company faces major operational challenges. Rising mortgage rates have frozen the housing market, making Opendoor’s iBuying business model extremely difficult to execute profitably.
Nejatian brings extensive e-commerce and technology experience from his executive role at Shopify. The new CEO has promised to use artificial intelligence to make home transactions “radically simpler, faster and more certain.”
The leadership overhaul reflects investor demands for change after the company struggled with declining home purchases and mounting losses. Revenue increased 34% in Q2, but home acquisitions dropped 63% year-over-year.
Meme Stock Momentum Continues
Opendoor’s stock performance has been driven more by social media enthusiasm than business fundamentals. Eric Jackson built a massive following on X after his successful Carvana investment before turning attention to Opendoor.
Jackson’s endorsement sparked intense retail investor interest that pushed shares from penny stock territory to over $10. The dramatic price swings have established Opendoor as a favorite among meme stock traders.
The company recently launched an agent partnership program that showed promising early results. The pilot program generated double the customers ready for cash offers compared to the traditional direct-to-consumer model.
This capital-light approach could provide new revenue streams without requiring massive inventory investments. Opendoor has expanded the pilot to all regions and is training real estate agents to participate.
The Federal Reserve has signaled upcoming interest rate cuts, which could help revive the housing market. Lower rates would make it easier for homeowners to sell properties and purchase new homes.
AI Integration Plans
Nejatian’s appointment signals a potential strategic pivot toward technology solutions rather than traditional home buying. His Shopify background suggests Opendoor may develop new platforms to facilitate real estate transactions.
The company ended Q2 with $1.5 billion in inventory representing 4,538 homes. This was down 32% from the first quarter as management worked to reduce holdings during the challenging market environment.
Despite recent gains, Opendoor shares remain far below pandemic-era highs when the housing market boomed. The company went public through a SPAC deal in 2020 at much higher valuations.
Nejatian takes control of a company with advanced technology capabilities but facing a frozen housing market that shows few signs of immediate improvement.
