"Shares of OPEN stock skyrocketed 80% in a single trading session, closing at $10.52 per share, an explosive rally triggered by a blockbuster announcement: Opendoor appointed Kaz Nejatian, the former chief operating officer of ShopifyNYSE:SHOP), as its new CEO. Nejatian, known for his AI expertise and scaling operations at the e-commerce giant, is stepping in amid high expectations for a tech-driven revival."
"The duo, backed by a $40 million investment from Khosla Ventures, signaled a return to "FounderMode," injecting fresh energy into a company that faced delisting threats earlier this year when shares dipped below $1. Retail investors, fueled by social media buzz and meme-stock fervor, piled in, pushing OPEN's market cap to $7.7 billion. Yet, while the market clearly loves the news, an 80% gain in one day feels wildly overdone, especially for a company still grappling with profitability."
Opendoor's shares jumped 80% after the company named Kaz Nejatian, former Shopify COO, as CEO and reinstated founders Keith Rabois and Eric Wu to the board. Khosla Ventures committed $40 million and founders signaled a return to "FounderMode." Retail investors and social media momentum pushed the market capitalization to $7.7 billion despite prior delisting threats when shares fell below $1. Opendoor operates as an iBuyer, using algorithms to make cash offers, renovate, and resell homes while earning spreads and ancillary fees. The stock surge raises questions about sustainability given ongoing profitability challenges.
Read at 24/7 Wall St.
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