TLDR
- Opendoor stock jumped 460% year-to-date following appointment of former Shopify COO Kaz Nejatian as CEO
- Co-founders Keith Rabois and Eric Wu returned to board with plans to slash workforce from 1,400 to 200 employees
- Company achieved first positive adjusted EBITDA in three years at $23 million in Q2 2025
- Heavy short interest at 23% of float could trigger squeeze if turnaround gains momentum
- Stock trades at 1.3 price-to-sales ratio but remains 74% below all-time highs
Opendoor Technologies stock has delivered explosive gains this year, surging 460% from July lows after announcing major leadership changes. The real estate technology company named Kaz Nejatian as its new CEO on September 10.
Nejatian previously served as chief operating officer at Shopify since 2019. His track record scaling e-commerce operations brings proven expertise to Opendoor’s turnaround efforts.
The appointment extends beyond just the CEO role. Co-founder Keith Rabois returns as board chairman while Eric Wu rejoins as a director.
Their comeback signals a strategic reset for the struggling company. Rabois made headlines calling the 1,400-person workforce “bloated” and claiming operations could run with just 200 employees.
This aggressive cost-cutting plan forms the core of the new turnaround strategy. The focus shifts from capital-intensive home buying toward creating a lean transaction platform.
Financial Recovery Shows Early Promise
Opendoor’s second quarter results revealed encouraging trends before the leadership overhaul. The company reported revenue of $1.6 billion during the period.
More importantly, adjusted EBITDA turned positive at $23 million. This marked the first profitable quarter in three years for the company.
The GAAP net loss narrowed to $29 million from $92 million in the prior year period. These improvements demonstrate management’s ability to control costs during difficult market conditions.
Revenue grew 4% year-over-year while home sales increased 5%. However, inventory levels remain 32% below last year’s figures as the company reduces holdings.
The housing market continues facing headwinds from elevated mortgage rates above 6.7%. New home sales moved up slightly in July but remained down annually.
Short Interest Creates Squeeze Potential
Short sellers currently hold positions worth over $745 million across 167.57 million shares. This represents more than 23% of Opendoor’s publicly available stock.
Heavy short interest creates potential for forced buying if positive news continues flowing. Short sellers closing positions could amplify any rally through a squeeze dynamic.
The stock trades at attractive valuation metrics despite recent gains. Price-to-sales ratio stands at 1.3 while price-to-book reaches 9.16.
Wall Street analysts maintain a consensus price target of $1.26, well below current trading levels. These targets reflect historical performance rather than new management potential.
Retail investors initially drove the rally after shares touched $0.51 in July. Social media campaigns helped push the stock higher throughout the summer months.
The Federal Reserve’s upcoming meeting could provide another catalyst. Interest rate cuts would help unlock the frozen housing market and boost transaction volumes.
Nejatian’s product management background and AI expertise align with Opendoor’s technology-driven approach. The new team plans leveraging artificial intelligence across the entire transaction process to reduce costs and improve efficiency.
