TLDR
- Opendoor (OPEN) surged 460% year-to-date after announcing Kaz Nejatian as new CEO, former COO of Shopify
- Co-founders Keith Rabois and Eric Wu returned to the board with plans to cut workforce from 1,400 to 200 employees
- Heavy short interest at 23% of available shares could fuel further rallies if turnaround succeeds
- Company reported positive adjusted EBITDA of $23 million in Q2 2025, first time in three years
- Stock remains 74% below all-time highs despite recent gains, trading at price-to-sales ratio of 1.3
Opendoor Technologies stock has exploded higher this year, gaining 460% since the start of 2025. The real estate technology company announced on September 10 that Kaz Nejatian would take over as CEO.
Nejatian previously served as COO at Shopify since 2019. His appointment represents a shift toward operational discipline and technology-focused growth.
The leadership change extends beyond just the CEO role. Co-founder Keith Rabois returns as Chairman of the board.
Eric Wu, another co-founder, also rejoined the board. Their return signals a strategic pivot for the struggling company.
Rabois made headlines by calling Opendoor’s 1,400-person workforce “bloated.” He believes the company could operate with just 200 employees.
This downsizing plan represents a core part of the new turnaround strategy. The focus shifts from capital-intensive home buying to creating a lean transaction platform.
The company received a $40 million equity investment from Khosla Ventures and Wu. This insider capital demonstrates confidence from those closest to the business.
Financial Performance Shows Early Signs of Recovery
Opendoor’s second quarter results revealed some positive trends before the leadership change. Revenue reached $1.6 billion for the quarter.
The company narrowed its GAAP net loss to $29 million. This represented a major improvement from the $92 million loss in the same quarter last year.
Most importantly, Opendoor achieved positive adjusted EBITDA of $23 million. This marked the first time the company reached this milestone in three years.
Revenue grew 4% year-over-year while homes sold increased 5%. However, inventory levels remain 32% below last year’s figures.
The company still faces challenges in the current market environment. Mortgage rates above 6.7% continue to dampen housing activity.
New home sales moved up slightly in July but remained down year-over-year. Existing home sales fell month-over-month while staying flat annually.
Market Dynamics Create Potential for Further Gains
Short sellers currently hold positions on 167.57 million shares worth over $745 million. This represents more than 23% of the company’s publicly available stock.
Heavy short interest creates potential for a squeeze if positive news continues. Forced buying from short sellers closing positions could amplify any rally.
The stock trades at a price-to-sales ratio of 1.30 and price-to-book ratio of 9.16. Wall Street analysts maintain a consensus price target of $1.26.
Despite recent gains, Opendoor stock remains 74% below its all-time highs. The previous peaks occurred when interest rates were near zero.
Retail investors initially drove the rally after the stock touched $0.51 in July. The social media-driven campaign helped push shares to current levels.
The Federal Reserve’s September meeting could provide another catalyst. Chairman Jerome Powell has indicated plans to cut interest rates.
Nejatian brings product management expertise and cost control experience from Shopify. Rabois praised his ability to drive profitability through artificial intelligence implementation.
The new team plans to leverage AI across the entire transaction process. This technology-first approach aims to reduce risk and improve efficiency.
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