Opendoor (OPEN) shares soared roughly 60% on Thursday following the announcement of a major leadership overhaul, propelling the stock to a 52-week high and extending an already remarkable rally that has seen shares climb more than 400% year-to-date. The real estate technology company named former Shopify executive Kaz Nejatian as its new CEO, while co-founder Keith Rabois will return to the company as chairman of the board, signaling a renewed strategic push from the company’s founding leadership.
The leadership change comes after former CEO Carrie Wheeler resigned last month under pressure from investors, including pointed criticisms from Rabois and hedge fund manager Eric Jackson, both influential figures in the stock’s resurgence. Jackson, who gained prominence for his bullish bets on Carvana, has been actively promoting Opendoor’s turnaround via social media and investor networks, adding momentum to the stock’s dramatic climb.
Opendoor, which went public through a special purpose acquisition company (SPAC) in 2020, has carved out a niche in the real estate market by using technology to buy and sell homes directly, pocketing the gains. Earlier this year, shares had fallen below $1 and the company faced the possibility of being delisted from Nasdaq, highlighting the magnitude of its recent recovery.
In a statement, Nejatian emphasized that the company would leverage artificial intelligence to make home transactions “radically simpler, faster, and more certain,” underscoring a technology-driven strategy aimed at transforming the often cumbersome real estate process. The company also announced that Eric Wu, Opendoor’s original CEO before stepping down in 2023, is rejoining the board, further reinforcing the message that the firm is returning to its roots in “founder mode.”
Investor excitement over the leadership reshuffle, combined with confidence in Opendoor’s innovative platform, helped push shares higher on Thursday morning, underscoring renewed optimism about the company’s long-term growth prospects in the competitive online real estate space.
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