TLDR
- Opendoor named Kaz Nejatian, former Shopify COO, as new CEO and brought co-founders Keith Rabois and Eric Wu back to the board
- Stock jumped 14.5% on Wednesday after announcing nationwide expansion plans, adding to a 538% year-to-date gain
- Company posted $1.6 billion revenue in Q2 with first positive adjusted EBITDA since 2022 at $23 million
- Q3 guidance turned negative with revenue projected at $800-875 million and adjusted EBITDA back in red
- Mixed investor sentiment with retail bulls backing expansion while prominent shorts including Andrew Left target the stock
Opendoor Technologies stock continued its volatile run Wednesday, jumping 14.5% after the company announced plans for nationwide expansion. The move comes just days after the real estate platform named a new CEO and brought its co-founders back to leadership roles.
The stock gained over 3% in premarket trading Thursday, building on momentum that has driven shares up 538% year-to-date. Opendoor now trades near record highs set last week.
Kaz Nejatian, formerly Shopify’s chief operating officer, took over as CEO in September. The company also said it was entering “founder mode” with co-founders Keith Rabois and Eric Wu rejoining the board.
Day 31 – Early morning here at Drake’s. I noticed a neighbor’s got a Bell payphone that lights up purple at night – where do I sign up for one of those when $OPEN hits $82? Shoutout to Kaz and Adam Bain for grinding the night shift. $OPEN is now over $10 a share, up from $3.21… pic.twitter.com/fsKKoc9fwU
— Eric Jackson (@ericjackson) September 18, 2025
Rabois assumed the chairman role while Wu returned as a director. The leadership reset aims to increase focus and speed while reprioritizing the core mission of making home sales simple through software.
The founder-led approach signals potential major changes ahead. Rabois has publicly stated that Opendoor is overstaffed and needs better operating discipline.
Nejatian’s compensation package is heavily equity-based, tying his success directly to shareholder returns. This structure aligns leadership incentives with stock performance if the turnaround strategy works.
Recent Financial Performance Shows Mixed Results
Second quarter results offered both encouragement and caution for investors. Revenue reached $1.6 billion, up modestly from the prior year period.
The company achieved $23 million in adjusted EBITDA, marking its first positive quarter on this metric since 2022. Opendoor sold 4,299 homes during the period.
Management noted continued housing market challenges. High mortgage rates keep suppressing buyer demand while driving more listings off the market.
However, third quarter guidance painted a different picture. Revenue is expected to fall to between $800 million and $875 million.
Adjusted EBITDA is projected to return to negative territory. Management cited headwinds from older, lower-margin homes in inventory due to reduced acquisition volumes.
Contribution profit margins are expected to compress from second quarter levels. The combination of brief profitability followed by weaker guidance highlights ongoing operational challenges.
Investor Sentiment Remains Divided
Retail investors have embraced the expansion news and leadership changes. Stocktwits sentiment remains in bullish territory, with users expressing relief at holding through recent volatility.
Crypto investor Anthony Pompliano, who bought shares last month, defended the stock on social media. He criticized Wall Street shorts for focusing on past performance while retail investors bet on future potential.
Not all sentiment is positive, however. Former hedge fund manager Martin Shkreli recently disclosed a short position in the stock.
Andrew Left from Citron Research called Opendoor “nothing more than a stock promo and a science project in how to burn money.” These high-profile shorts add pressure on management to deliver results.
The stock’s meteoric rise has created both opportunity and risk. Big moves can be self-reinforcing but also reduce room for error.
For the rally to continue, investors need proof of reaccelerated home acquisitions and steadier contribution margins. Sustained progress toward positive adjusted EBITDA will be crucial for validating the current valuation.
The company’s nationwide expansion announcement on Wednesday represents management’s confidence in the business model despite near-term headwinds.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
