This is why Opendoor stock exploded 65% in a day—and what happens next might matter more

Opendoor Technologies Inc. (NASDAQ: OPEN) witnessed a dramatic surge in its stock price on September 11, 2025, gaining over 65% intraday to touch a high of $9.68 after closing the previous day at $5.86. The rally followed the announcement of a sweeping leadership overhaul, with the company reinstating its co-founders to the board and appointing Kaz Nejatian, a high-profile product executive from Shopify, as its new chief executive officer. The restructuring also involved a $40 million capital infusion from Khosla Ventures and Eric Wu, the company’s former CEO and co-founder.

The market responded with rare enthusiasm, catapulting the stock to its highest single-day gain in recent memory. The move was especially celebrated by retail investors, many of whom had organized around social media under the #OpenArmy hashtag, long campaigning for the return of founder-led leadership and product-centric strategy. For a company that has struggled with profitability and operational clarity since its 2020 SPAC debut, this reversion to “founder DNA” was interpreted as a potential turning point.

What leadership changes did Opendoor announce and why are they significant for investors?

Kaz Nejatian, previously Chief Operating Officer at Shopify, has officially taken over as CEO of Opendoor Technologies. Known for his product discipline and AI-led scaling experience, Nejatian replaces Carrie Wheeler, who stepped down from her role following mounting pressure from both institutional and retail investors.

Co-founders Keith Rabois and Eric Wu, both of whom had stepped away from the board, have returned. Rabois now serves as Chairman of the Board while Wu, who had helmed Opendoor from its inception through 2022, joins as a director and investor. Their return aligns with a broader industry trend where founder-led companies often trade at a premium due to perceived clarity of vision, sharper execution, and deeper strategic alignment.

This reconfiguration not only resets the leadership narrative but also reestablishes accountability with long-term stakeholders who have grown increasingly skeptical of the company’s post-SPAC trajectory. For institutional watchers, the simultaneous return of capital and founders indicates a coordinated attempt to revive operational credibility and shareholder trust.

How has Opendoor performed financially in recent quarters and what’s weighing on investor sentiment?

Despite being one of the most recognized names in the iBuyer space, Opendoor Technologies has consistently struggled with profitability. The company has yet to post a full-year net profit and is projected to report a net loss of approximately $234 million in FY25, according to consensus estimates. The revenue decline has also been steep: after peaking at $15.6 billion in 2022, full-year 2024 revenue fell to roughly $4.05 billion, with a trailing twelve-month (TTM) revenue as of mid-2025 hovering near $5.18 billion.

Gross margins remain under pressure due to high carrying costs, repair expenses, and interest burden. The company reported a diluted earnings per share (EPS) of –$0.03 for the quarter ending June 30, 2025, slightly better than the –$0.04 expected by analysts, but still far from breakeven. Operating expenses have remained high across the board, including research and development and G&A costs. Many institutional investors have pointed to Opendoor’s negative free cash flow and dependence on real estate market cyclicality as key reasons for their muted outlook.

What is Opendoor’s business model and how has it evolved since its SPAC debut?

Founded in 2014, Opendoor pioneered the iBuyer model — a tech-enabled approach where the company buys homes directly from sellers, makes repairs, and resells them for a margin. This model gained traction in a low-interest rate environment where liquidity was ample and real estate prices were rising rapidly. However, the shift in the macroeconomic environment, including elevated interest rates and a cooling housing market, exposed the capital-intensive nature of the model.

The company’s SPAC debut in 2020 was met with initial enthusiasm. Backed by Chamath Palihapitiya and notable venture capital firms like Khosla Ventures, Opendoor reached lofty valuations driven by the narrative of real estate disruption. But as economic conditions tightened and housing supply dynamics shifted, the company’s losses mounted and its competitive edge eroded. The promise of automation and AI-led real estate efficiency turned into a grind of unsold inventory, thinning margins, and a skeptical public market.

Why are investors optimistic now despite Opendoor’s historical losses?

There are several reasons fueling the recent optimism. The leadership change signals a return to founder-led decision-making and a strategic realignment around Opendoor’s original vision. Keith Rabois and Eric Wu bring institutional memory and credibility, both within the company and among early backers. Kaz Nejatian’s track record at Shopify — especially in building scalable platforms and integrating AI into core operations — adds a new layer of executional promise.

Additionally, the $40 million investment from Khosla Ventures and Eric Wu reinforces belief in the turnaround. The company has declared its intent to pivot into a more AI-first operating model, where pricing, inspections, renovations, and resales can be algorithmically optimized to reduce costs and increase speed. If successfully implemented, this shift could help Opendoor improve its margin profile and reduce operational drag.

Retail sentiment has also played a massive role. With the resurgence of meme stocks and renewed social media activity around $OPEN, the narrative has gained traction beyond fundamentals. The Open Army, a vocal community of shareholders, has been celebrating the leadership shake-up as a “victory for the visionaries.”

What are the risks that could derail this apparent turnaround?

Despite the euphoria, the fundamental risks remain acute. Opendoor is still burning cash, and macroeconomic factors such as interest rates, mortgage availability, and housing affordability directly affect its ability to buy and sell homes profitably. Execution risk around AI-led transformation is non-trivial, especially in a business that deals with physical assets, regulation, and consumer timelines.

Margins are slim and further deterioration in home prices or sales velocity could create liquidity stress. While the founders’ return brings hope, it does not erase the structural inefficiencies that have plagued the iBuyer model. Moreover, the high short interest — with over 25% of float reportedly shorted — suggests that many institutional investors remain unconvinced. Any disappointing quarterly report or slowdown in AI execution could trigger rapid drawdowns.

What is the institutional sentiment and FII/DII positioning on Opendoor stock after the rally?

Institutional reaction has been cautiously positive. While some analysts have upgraded their short-term outlooks, few have moved to bullish ratings given the company’s historical volatility. The stock’s massive surge triggered renewed interest among hedge funds and momentum traders, though long-only funds are expected to wait for concrete signs of turnaround such as improved EPS guidance, revenue stabilization, or positive operating cash flows.

As of current filings, there has been no significant accumulation by domestic or foreign institutional investors post-rally, indicating that the bulk of the recent move is retail-driven. Foreign institutional investors (FIIs) are watching the AI strategy rollout closely, while domestic players are expected to maintain a “wait-and-watch” stance heading into the next earnings season.

What can investors expect next as Opendoor shifts toward AI and tighter execution?

Looking ahead, investors should closely monitor the company’s next earnings report to see how new leadership is impacting top-line revenue and bottom-line losses. Key indicators to watch include gross margins, sell-through velocity, inventory aging, and SG&A trends. The market will also look for specific milestones in AI deployment, particularly in pricing models, home evaluations, and inspection tools.

Additionally, commentary from Kaz Nejatian and Keith Rabois on cost structure, capital efficiency, and roadmap execution will shape institutional confidence. Any announcement regarding further funding rounds, partnerships, or technology acquisitions could serve as catalysts or red flags depending on context.

If Opendoor can begin showing consistent margin improvement and disciplined cash burn, the stock could earn its way into institutional portfolios again. Otherwise, the momentum risks fading as quickly as it arrived.

Can Opendoor Technologies rebuild investor trust and reignite the real estate tech narrative?

Opendoor’s leadership reset and stock spike may feel like déjà vu in a market saturated with turnaround stories. But the alignment of founder control, strategic capital, and operational clarity makes this particular reset worth watching. The appointment of Kaz Nejatian signals a decisive pivot toward automation and efficiency, while the return of Keith Rabois and Eric Wu restores long-missing narrative cohesion.

Still, the road to credibility is long. The company remains loss-making, macro headwinds persist, and meme-fueled rallies can be fickle. But with the stock up over 65% and fresh eyes on the execution track, Opendoor now has something it hasn’t had in a while: a real shot.