Opendoor just pulled off one of the year's biggest corporate turnarounds, naming former Shopify COO Kaz Nejatian as its new CEO and bringing co-founder Keith Rabois back as chairman. The PropTech company's stock exploded 30% in after-hours trading, capping a stunning transformation from near-delisting to a $6 billion valuation in just three months.
Opendoor just delivered the kind of corporate comeback that makes Silicon Valley legends. The PropTech pioneer announced Wednesday it's tapped former Shopify COO Kaz Nejatian as CEO and named co-founder Keith Rabois as chairman, sending shares rocketing 30% in extended trading.
The moves cap a remarkable three-month transformation for a company that was literally facing delisting from the Nasdaq in May. With tonight's surge, Opendoor now commands a market cap of nearly $6 billion - up from less than $400 million just 12 weeks ago. That's a fifteenfold increase that puts most meme stocks to shame.
"Literally there was only one choice for the job: Kaz," Rabois said in a statement according to CNBC's reporting. The endorsement carries serious weight - Rabois, now a partner at Khosla Ventures, helped launch Opendoor back in 2014 alongside Eric Wu, who's also rejoining the board.
Nejatian brings serious e-commerce chops to the role. During his six-year run at Shopify, he oversaw the Canadian giant's entire product division before being promoted to COO. His last day at Shopify is September 12, with the company noting in SEC filings that executives will absorb his responsibilities.
The timing couldn't be more dramatic. This leadership reset comes just weeks after former CEO Carrie Wheeler resigned under intense pressure from activist investors. Rabois and hedge fund manager Eric Jackson had been vocal critics, publicly calling for Wheeler's departure as the company's stock languished below $1.
Jackson's involvement proved pivotal in Opendoor's meme stock transformation this summer. After he began promoting the company online, retail investors piled in, creating the kind of trading frenzy usually reserved for GameStop or AMC. The surge earned Opendoor legitimate "meme stock" status, complete with Reddit threads and day-trader devotion.
