TLDR
- Opendoor (OPEN) stock jumped 40% after naming former Shopify COO Kaz Nejatian as new CEO
- Company received $40 million investment from Khosla Ventures and co-founder Eric Wu
- Co-founders Keith Rabois and Eric Wu return to board of directors, with Rabois as chairman
- Wall Street analysts maintain “Hold” rating with average price target of $1.24-$1.44, suggesting 75-78% downside
- Company shifting from direct iBuying model to working with agents while focusing on AI integration
Opendoor Technologies saw its stock price surge 40% after announcing the appointment of Kaz Nejatian as its new chief executive officer. Nejatian previously served as chief operating officer at Shopify.
The leadership change comes with a $40 million investment from Khosla Ventures and co-founder Eric Wu. This funding aims to support the company’s growth and expansion plans.
Nejatian replaces Carrie Wheeler, who resigned on August 15. Wheeler led the company through a challenging period that included layoffs and pressure from activist investors.
What a day for $OPEN! After hours trading closed at $8.18. A new CEO, @CanadaKaz (Shopify) was announced. Two new board members @rabois and @ericwu01 return. 375M in volume. Tomorrow will be even more incredible. #OpenAarmy pic.twitter.com/bbIGUvdCTS
— Jack Ledger (@JackLedger_x) September 11, 2025
The board selected Nejatian based on his track record in product transformation and artificial intelligence expertise. At Shopify, he was known for transforming products, building teams, and driving 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.”
The activist investors had expressed disappointment with Opendoor’s second-quarter earnings report. This disappointment led to increased calls for new leadership at the company.
Founders Return to Leadership
The company is bringing back its co-founders Keith Rabois and Eric Wu to the board of directors. The board believes their return will add “founder DNA” at a crucial time.
Rabois will serve as chairman of the board. Wu, who co-founded Opendoor in 2013 and stepped down as CEO in 2022, returns after launching his own AI startup called NavigateAI.
Wu’s return comes with his investment in the company alongside Khosla Ventures. His involvement signals confidence in the new direction under Nejatian’s leadership.
The founders’ return represents a shift back to the company’s original vision and strategy. Their experience in building the company from the ground up could prove valuable during this transition period.
Business Model Evolution
Opendoor is moving away from its direct-to-consumer iBuying model. The company is now adopting a more flexible approach that includes working with real estate agents.
This strategic shift aims to improve profit margins. It also reduces the company’s exposure to housing market cycles.
The new model represents a departure from Opendoor’s original strategy of buying homes directly from sellers. The company will now work more closely with traditional real estate professionals.
The change comes as the iBuying industry faces challenges from rising interest rates and market volatility. Other companies in the space have also adjusted their business models in response to these conditions.
Despite the positive stock reaction, Wall Street analysts remain cautious about Opendoor’s prospects. Eight analysts have set an average one-year price target of $1.24 per share.
This target represents a potential downside of 78.80% from the current trading price of $5.86. The price targets range from a high of $2.00 to a low of $0.70.
Eleven brokerage firms maintain a consensus recommendation of “Hold” for the stock. This rating sits in the middle of a scale that ranges from Strong Buy to Sell.
According to GuruFocus estimates, the projected fair value for Opendoor over the next year is $1.07. This suggests a potential downside of 81.74% from the current price.
The company’s renewed focus on AI and product innovation could support future growth. Nejatian’s appointment brings expertise in scaling technology operations and implementing AI-driven solutions.
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