Opendoor taps new CEO and names Keith Rabois chairman, boosting stock 30%

Opendoor, the digital real estate platform that has captured the attention of retail investors lately, announced significant changes to its leadership on Wednesday. The company has appointed Kaz Nejatian, a former executive at Shopify, as its new CEO, while co-founder Keith Rabois steps into the role of chairman. This announcement sent Opendoor's stock soaring by 30% in after-hours trading, marking a remarkable recovery since the stock's record low in June, when it had plummeted. Rabois, who is also a partner at Khosla Ventures, was instrumental in launching Opendoor back in 2014 alongside Eric Wu, its first CEO, who recently stepped down. Wu is making a comeback to the board following this leadership transition. This shake-up comes on the heels of Carrie Wheeler's resignation last month, which followed mounting pressure from investors, including Rabois and hedge fund manager Eric Jackson, who openly criticized her leadership. In May, Opendoor faced the risk of delisting from Nasdaq due to its stock price falling below $1. However, a surge in retail investor interest transformed the company's fortunes, leading to its designation as a 'meme stock' after Jackson began promoting it. With the latest stock surge, Opendoor's market capitalization has surged to nearly $6 billion, a staggering increase from under $400 million just three months prior. Kaz Nejatian, who spent six years at Shopify as COO and oversaw its product division, is set to officially transition to his new role at Opendoor after September 12. Rabois expressed his enthusiasm for Nejatian's appointment, stating, 'Literally there was only one choice for the job: Kaz. I am thrilled that he will be serving as CEO of Opendoor.' Founded through a special purpose acquisition company in 2020, Opendoor aims to leverage technology to streamline the buying and selling of homes, capturing profits along the way.