Opendoor stock jumps 20% after company taps ex-Shopify COO as new CEO

Opendoor, the net actual property platform that is seen a surge of retail investor curiosity in current months, stated Wednesday that it is tapped former Shopify govt Kaz Nejatian as CEO and named co-founder Keith Rabois as chairman.

The inventory popped 30% in prolonged buying and selling, and is now up greater than fifteenfold since hitting its file low in June.

Rabois, a associate at Khosla Ventures, helped launch Opendoor in 2014, together with a gaggle that included Eric Wu, who served as the primary CEO earlier than stepping down in 2023. Wu is rejoining the board as a part of Wednesday’s announcement.

The strikes come after Carrie Wheeler final month resigned as Opendoor’s CEO following an intense strain marketing campaign from traders. Rabois and hedge fund supervisor Eric Jackson had been amongst those that had been vocal critics of Wheeler and known as for her departure.

The corporate was susceptible to being delisted from the Nasdaq in Could on account of its inventory worth being under $1. Weeks later, Opendoor attracted a surge in curiosity from retail traders, incomes it “meme inventory” standing, after Jackson started touting the corporate.

With the after-hours pop, Opendoor now has a market cap of near $6 billion, up from lower than $400 million lower than three months in the past.

Nejatian spent six years at Shopify and oversaw the Canadian e-commerce firm’s product division along with serving as its COO. Nejatian’s final day at Shopify can be Sept. 12, and the corporate’s govt staff will “assume Kaz’s tasks,” Shopify said in a regulatory submitting.

“Actually there was just one selection for the job: Kaz,” Rabois stated in a press release. “I’m thrilled that he can be serving as CEO of Opendoor.”

Opendoor went public by way of a special purpose acquisition company in 2020. The corporate’s enterprise includes utilizing know-how to purchase and promote houses, pocketing the features.

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