In a major leadership shakeup, Opendoor Technologies (OPEN) has appointed Kaz Nejatian, former chief operating officer at Shopify (SHOP), as its new CEO. The move comes as the company gains popularity among retail investors and increases its focus on artificial intelligence (AI). Following the news, OPEN stock soared over 35% in after-hours trading.
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Nejatian succeeds Carrie Wheeler, who resigned on August 15 after leading the company through a difficult period marked by layoffs and mounting pressure from activist investors. Calls for new leadership surged after the investors were disappointed with Opendoor’s second-quarter earnings report.
Opendoor’s board cited Nejatian’s strong track record in product transformation and his expertise in AI as key reasons for his selection. At Shopify, Nejatian was known for his ability to transform products, build teams, and drive operational efficiency at scale.
“With AI, we have the tools to make that experience radically simpler, faster, and more certain,” Nejatian said. “That’s the future we’re building.”
Founders Return to the Fold
Alongside Nejatian’s appointment, Opendoor is bringing back its co-founders, Keith Rabois and Eric Wu, to the board of directors. The company believes their return will add “founder DNA” at a key moment.
Rabois will serve as chairman, while Wu, who co-founded Opendoor in 2013 and stepped down as CEO in 2022, returns after launching his own AI startup, NavigateAI.
What Comes Next for Opendoor?
Opendoor is entering a new chapter, marked by leadership changes, a strategic business model shift, and a deeper commitment to AI and data-driven operations.
The company is shifting from a direct-to-consumer iBuying model to a more flexible approach that includes working with agents. This move aims to improve margins and reduce exposure to housing market cycles.
Looking ahead, the company’s renewed focus on product innovation and operational efficiency could support its bottom-line growth.
Is OPEN Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on OPEN stock based on one Buy, three Holds, and five Sells assigned in the past three months. Furthermore, the average OPEN price target of $1.44 per share implies 75.43% downside risk.
