The search is finally over, and investors clearly like what they see. Opendoor (NASDAQ:OPEN) stock jumped more than 30% in after-hours trading on Wednesday after the home-selling company announced Kaz Nejatian, until recently Shopify’s Chief Operating Officer, as its new CEO.
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For a company built on using tech to make real estate less painful, this move feels like a real turning point. Nejatian has got the product vision from Shopify, the big-tech experience from Meta, and even some startup grit from founding the fintech Kash. In short, he’s the kind of leader who knows how to take a platform and scale it, and Wall Street wasted no time cheering the hire.
In recent months, Opendoor has been emphasizing its use of AI more openly, and today’s announcement cast Nejatian as the right person to lead in what it called the “AI era.” That framing resonated with investors hungry for a bigger strategic pivot, even as the company’s core services remain centered on Cash Offer, Key Connections, and Cash Plus.
The market also lit up on news that Opendoor’s co-founders, Keith Rabois and Eric Wu, are rejoining the board, with Rabois stepping in as chairman. Together with Khosla Ventures, they are putting $40 million into Opendoor shares, a move that underscored their commitment to the company’s next phase.
J.P. Morgan’s Dae Lee argues that this isn’t just a reshuffling of names, but the start of a potentially significant transition. The analyst points out that Nejatian’s background in scaling platforms and driving cost discipline could help accelerate Opendoor’s shift “from a single cash-offer operator to a multi-product real estate platform.” While Lee expects the company to keep its current focus in the near term, the analyst highlighted the new CEO’s ability to sharpen product execution and improve the bottom line.
“We believe Nejatian’s tech-driven background, along with renewed founder involvement, positions Opendoor to sharpen product focus and execution as it navigates ongoing housing market challenges,” Lee noted.
That perspective landed in a market that has already been bullish on the stock. Since hitting an all-time low in late June, Opendoor shares have surged almost 1,500%.
To this end, Lee assigns Opendoor stock an Overweight (i.e., Buy) rating, pointing to the company’s “value proposition of making home selling simple, certain, and fast.” (To watch Nejatian’s track record, click here)
Still, all other analysts who cover the stock remain skeptical. With 5 Sells and 3 Holds rounding out the consensus, the Street leans toward a Moderate Sell, with an average price target of $1.44, implying a potential 75% downside over the next year. (See Opendoor stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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