Opendoor's stock soars after appointing a tech executive, signalling a bold AI push in real estate
Opendoor Technologies saw its stock surge 12 percent in after-hours trading on Wednesday, following the announcement that Shopify’s chief operating officer, Kaz Nejatian, will become the online real estate platform’s new chief executive officer, as reported by The Wall Street Journal.
The company’s shares have climbed more than 250 percent this year, rallying from a low of 51 cents in June to $6.54, and its market cap now approaches US$6bn, up from less than US$400m less than three months ago, according to CNBC.
Nejatian’s appointment comes at a pivotal moment for Opendoor, which has recently attracted significant attention from retail investors and achieved “meme stock” status.
The leadership change follows the resignation of former CEO Carrie Wheeler in August, after a campaign by investors who believed the company should do more to leverage artificial intelligence and capitalize on its newfound popularity, as detailed by The Wall Street Journal.
Opendoor, which uses technology to buy and sell homes, is doubling down on artificial intelligence as a core strategy.
“With AI, we have the tools to make that experience radically simpler, faster and more certain. That’s the future we’re building,” Nejatian said in a statement, as cited by The Canadian Press.
Opendoor’s board echoed this sentiment, with co-founder and newly appointed board chair Keith Rabois stating, “Literally there was only one choice for the job: Kaz,” and emphasizing Nejatian’s track record of transforming products and using AI to reshape company operations.
The company is also “going into founder mode,” bringing Rabois and fellow co-founder Eric Wu back to its board, effective immediately.
Board member Eric Feder noted that their return would inject “founder DNA” and energy at a crucial time for the company, as reported by The Wall Street Journal.
Nejatian, who joined Shopify in 2019, spent six years overseeing the Canadian e-commerce company’s product division in addition to his COO role. His last day at Shopify will be Friday, and his responsibilities will be assumed by the executive team, according to a regulatory filing cited by The Canadian Press.
Shopify spokesperson Ben McConaghy commented, “We’re now entering an exciting arc in our history, with AI speeding up our progress and a team that’s stronger than ever.”
Opendoor went public through a special purpose acquisition company in 2020 and was at risk of being delisted from the Nasdaq in May due to its low share price.
However, the company’s fortunes reversed after a surge in retail investor interest, and it now stands as a prominent example of how technology and market dynamics can rapidly reshape the real estate sector, as reported by CNBC.
