Shares of residential real estate platform Opendoor Technologies surged about 40% in after-hours trading on Thursday after the company announced the appointment of Kaz Nejatian, the former chief operating officer of Shopify, as its new chief executive officer.

The move comes after weeks of speculation following the ouster of Carrie Wheeler in mid-August, a decision widely attributed to pressure from retail investors who have increasingly influenced the company’s direction.

Opendoor said it is doubling down on artificial intelligence while reinstating its founders on the board as it adapts to its new identity as a meme stock.

The company which has gained more than 260% so far this year, said Nejatian will guide the company into a new phase that emphasizes artificial intelligence and a return to founder-led leadership.

“Nejatian, a lawyer-turned-entrepreneur and product leader, is an AI-native executive with a track record of transforming products, teams, and companies at scale,” Opendoor said in a statement.

With Kaz Nejatian’s arrival, founders also reclaim influence on board

Alongside Nejatian’s arrival, co-founders Keith Rabois and Eric Wu will return to the company’s board of directors.

Rabois, a well-known venture capitalist and early technology investor, will assume the role of chairman.

The company said the move signalled a return to “founder mode” at a critical moment in Opendoor’s trajectory.

“Literally there was only one choice for the job: Kaz,” Rabois said in the announcement.

He added that Nejatian “understands the potential for AI to radically reshape a company’s entire operations.”

Board member Eric Feder echoed this view, saying that the return of the founders would help inject “founder DNA” and renewed energy into the business.

Nejatian himself said he saw significant opportunities to apply artificial intelligence to the real estate process, promising to make buying and selling a home “simpler, faster, and more certain.”

As part of its leadership shake-up, Opendoor disclosed that it had entered into securities purchase agreements with Khosla Ventures and co-founder Eric Wu to provide $40 million of new capital through a private investment.

From delisting threat to meme stock status

The leadership change caps a dramatic turnaround for Opendoor, which only a few months ago was facing the prospect of being delisted from the Nasdaq after its shares fell below $1 in May.

The company’s fortunes shifted in July, when it became the subject of viral attention online and won a wave of support from retail traders.

Investors on social media have compared Opendoor’s potential to companies like Carvana in the automotive space and Zillow in online real estate.

Its stock price tripled in that month alone, fuelled by endorsements from hedge fund manager Eric Jackson and discussions across social media platforms.

That momentum slowed in August after the company reported quarterly results that disappointed many of its new backers.

Critics argued that Opendoor was not moving quickly enough to capitalize on its sudden popularity, and calls grew louder for a management shake-up and greater focus on artificial intelligence.

Wheeler, who had led the company since 2022, stepped down on August 15.

Analysts see parallels with Carvana

Some analysts say Opendoor’s latest moves could put it on a path similar to other disruptive e-commerce platforms.

Zacks Investment Research noted that, while Opendoor remains speculative, it is also innovative, drawing comparisons with Carvana’s rapid ascent in the auto sector.

“If Opendoor can successfully replicate the Carvana playbook in the real estate sector, it can disrupt a massive market,” the firm said.

With Thursday’s after-hours surge, Opendoor’s market capitalization has climbed to nearly $6 billion, up from less than $400 million just three months ago.

The company’s leadership reset, focus on artificial intelligence, and continued retail investor enthusiasm suggest it is preparing to enter a new and uncertain chapter in its bid to redefine the housing market.

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