The stock of Opendoor Technologies (OPEN) is up 60% on Sept. 11 after the online real estate company named a new chief executive officer (CEO) a day earlier.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Specifically, Opendoor has named Shopify (SHOP) executive Kaz Nejatian as its new CEO and Opendoor co-founder Keith Rabois as the new chairman of the board of directors. OPEN stock, which is a favorite among retail investors, has hit a 52-week high of $9.43 per share on reports of the new CEO.
OPEN stock is now up 493% this year as investors treat the company as a meme stock. Former Opendoor CEO Carrie Wheeler resigned in August after investors criticized her management of the company, including hedge fund manager Eric Jackson, who has been a key supporter of the stock. Jackson is widely followed on social media and has been boosting OPEN stock online.
‘Founder Mode’
In announcing the senior executive changes, Opendoor Technologies said it is “going into founder mode” by bringing Rabois back to lead the board of directors. The company went public through a special purpose acquisition company (SPAC) deal in 2020. Opendoor’s business involves using technology to buy and sell homes online.
It is a business that has struggled since the end of the COVID-19 pandemic. OPEN stock traded below $1 earlier this year, and the company was in danger of being delisted from the Nasdaq (NDAQ) exchange on which it trades. Opendoor has said that it plans to use artificial intelligence (AI) to make the process of buying and selling a home simpler and faster.
Is OPEN Stock a Buy?
The stock of Opendoor Technologies has a consensus Moderate Sell rating among eight Wall Street analysts. That rating is based on one Buy, two Hold, and five Sell recommendations issued in the last three months. The average OPEN price target of $1.02 implies 90% downside from current levels.
