Opendoor

Opendoor is undergoing a major transformation led by co-founder Keith Rabois and new CEO Kaz Nejatian, following investor pressure and leadership changes. Rabois plans to streamline operations, reduce headcount significantly from 1,400 to around 200, and reinstate in-person work. These changes aim to address profitability concerns and refocus the company’s strategy. While the initial market reaction was positive, analysts remain cautious about the underlying fundamentals and persistent cash burn. The company’s future depends on successful implementation of the turnaround plan.

Opendoor (OPEN) shares surged 50% after appointing Kaz Nejatian as CEO and Keith Rabois as Chairman, boosting investor confidence. The stock, up over 400% year-to-date, hit a 52-week high. The leadership change, following the previous CEO’s resignation due to investor pressure, is seen as a potential turnaround. Hedge fund manager Eric Jackson has actively supported Opendoor’s resurgence. Analysts are monitoring Opendoor’s ability to scale and manage inventory risk for long-term success.

Opendoor appointed Kaz Nejatian as CEO, replacing Carrie Wheeler, while co-founder Keith Rabois becomes chairman. The news triggered a 30% stock surge after hours, rebounding from a record low. Rabois and Eric Jackson had publicly criticized Wheeler’s leadership. The leadership change follows a period of high volatility, including a potential Nasdaq delisting and subsequent “meme stock” surge. Nejatian’s experience at Shopify is expected to benefit Opendoor’s platform. The company aims for sustained profitability in the challenging iBuying real estate market.