Opendoor shares exploded 60% Thursday after the struggling real estate platform named Shopify executive Kaz Nejatian as CEO and brought back co-founder Keith Rabois as chairman. The dramatic leadership overhaul caps months of investor pressure that forced out former CEO Carrie Wheeler and signals a founder-led turnaround attempt for the once-promising PropTech darling that nearly faced delisting earlier this year.
The turnaround story that captivated retail investors just got its next chapter. Opendoor stock rocketed 60% Thursday after the real estate platform announced it's "going into founder mode" with a complete leadership shake-up that brings Shopify executive Kaz Nejatian in as CEO.
The move represents a stunning about-face for a company that was trading below $1 earlier this year and facing potential delisting from the Nasdaq. Now, with shares hitting a 52-week high, Opendoor has delivered more than 400% returns to investors who stuck with the meme stock darling through its darkest period.
Behind the dramatic turnaround sits a pressure campaign that ousted former CEO Carrie Wheeler last month. The campaign was led by co-founder Keith Rabois and hedge fund manager Eric Jackson, who built a massive social media following partly through his successful Carvana bet before turning his attention to Opendoor.
"We're bringing the band back together," Rabois said in the company announcement, as both he and original CEO Eric Wu rejoin the board. Wu, who stepped down as CEO in 2023, will help guide the company's renewed focus on using artificial intelligence to streamline home buying and selling.
The leadership change puts Nejatian, a former Shopify executive with deep tech operational experience, at the helm of a company that went public through a SPAC in 2020 with grand ambitions to revolutionize real estate. Opendoor's core business model involves using algorithms to quickly buy homes from sellers, then reselling them on its platform while pocketing the spread.
"We will use artificial intelligence to make the process of buying and selling a home radically simpler, faster and more certain," Nejatian said in his first statement as CEO. The promise echoes the company's original pitch to investors, but now comes with the credibility of a leadership team that's navigated both startup scaling and public company pressures.
The timing couldn't be better for a real estate tech revival. While traditional brokerages struggle with changing commission structures and economic headwinds, Opendoor's tech-first approach positions it to capture market share from legacy players. Jackson, whose vocal support helped fuel the stock's meme status, has repeatedly argued the company's technology moat remains intact despite operational missteps.
