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

Opendoor, the online real estate platform that’s seen a surge of retail investor interest in recent months, said Wednesday that it’s tapped former Shopify executive Kaz Nejatian as CEO and named co-founder Keith Rabois as chairman.

The stock popped 30% in extended trading, and is now up more than fifteenfold since hitting its record low in June.

Rabois, a partner at Khosla Ventures, helped launch Opendoor in 2014, along with a group that included Eric Wu, who served as the first CEO before stepping down in 2023. Wu is rejoining the board as part of Wednesday’s announcement.

The moves come after Carrie Wheeler last month resigned as Opendoor’s CEO following an intense pressure campaign from investors. Rabois and hedge fund manager Eric Jackson were among those who were vocal critics of Wheeler and called for her departure.

The company was at risk of being delisted from the Nasdaq in May due to its stock price being below $1. Weeks later, Opendoor attracted a surge in interest from retail investors, earning it “meme stock” status, after Jackson began touting the company.

With the after-hours pop, Opendoor now has a market cap of close to $6 billion, up from less than $400 million less than three months ago.

Nejatian spent six years at Shopify and oversaw the Canadian e-commerce company’s product division in addition to serving as its COO. Nejatian’s last day at Shopify will be Sept. 12, and the company’s executive team will “assume Kaz’s responsibilities,” Shopify said in a regulatory filing.

“Literally there was only one choice for the job: Kaz,” Rabois said in a statement. “I am thrilled that he will be serving as CEO of Opendoor.”

Opendoor went public through a special purpose acquisition company in 2020. The company’s business involves using technology to buy and sell homes, pocketing the gains.

WATCH: Cramer’s lightning round