Opendoor, the tech-enabled, real estate heavyweight, had its stock price almost double. This increase immediately followed an announcement of new leadership. The news sent the company’s shares soaring — as much as 30% in extended trading. This stunning reversal of fortune comes for a company that went public via a SPAC merger in 2020.
The stock’s recent run is nothing short of spectacular! It’s increased over fifteen times since the record low it started at back in June. This growth has catapulted Opendoor’s market capitalization to almost $6 billion. That’s a huge bounce back from less than $400 million just three months ago! That leap comes on the heels of Carrie Wheeler’s resignation last month as CEO. This change was only ushered in following an unusually high level of investor pressure for a change in management.
Wheeler’s departure followed the calls of outspoken critics from the impact investor community, who insisted that she resign. Among them were some of the loudest voices, including Keith Rabois and Eric Jackson. Defying Market Gravity Amidst this leadership upheaval, Opendoor recently named Kaz Nejatian its new CEO. Nejatian’s background should serve him well in the role. He spent six years at Shopify, leading the product organization and later acting as COO.
Rabois, who today becomes chairman of Opendoor, said he was excited about the opportunity to Nejatian’s talents.
“Literally there was only one choice for the job: Kaz,” – Keith Rabois.
Nejatian’s appointment is indicative of a tactical reversal for Opendoor. The company is now focusing even more on technology to simplify and streamline the home buying and selling process—and in turn, increasing the company’s profits. It’s the company’s unique approach to real estate that puts it at the leading edge of the entire industry. Investors are bullish on its future prospects with a new management at the helm.
Either way, Opendoor’s stock is on the rally. Now, with a stronger leadership team, the company’s growth isn’t about to stop. Nejatian has a wealth of experience to draw upon. Under Rabois’s stewardship, they would massively accelerate Opendoor’s expansion and fortify the startup’s market heft in the cutthroat real estate sector.