Opendoor Technologies Inc Common Stock

Opendoor claims to have a superior way to price homes using **artificial intelligence**-driven [pricing models](https://www.zdnet.com/article/opendoor-discusses-the-secret-sauce-a-deeper-mechanism-to-the-world/). They look to make a healthy margin of four to six percent on home sales. It gives sellers cash for their homes, holds the home on its books, and then finds a buyer, and pockets the spread.

• In Q4, Opendoor sold even more homes than it acquired
• Opendoor doubled market footprint in 2021 to 44 markets,
• Now has a presence in 17 of the top 20 most populous cities in the US

**Zillow** abandoned the home iBuying business last year after suffering devastating losses. This was a massive competitor that is no longer in the running.

$OPEN is a polarizing stock. It's easy to see how rising interest rates might have encouraged home buyers to rush to buy houses from Opendoor in advance of rising rates (which could explain why $OPEN sold more homes than it acquired this quarter).

Counter-balancing forces:
• Inventory is as low as it’s ever been
• Purchase mortgage applications are higher than they’ve been for the last decade (except for 2021)
• Opendoor is a tiny part of the market, and has a ton of room to grow.

Bottom line: The real estate industry has been a holdout from digital transformation innovation. Is this because it will never change, or has just been slower to change? I think the secular trend of services moving from offline to online will be one that come to the real estate industry eventually as well.

It's still very early in this story. Potentially too early. As a taste, I already 'caught a falling knife' on my entry today.

To learn more, check out this discussion with Tyler Okland about Opendoor:

[https://youtu.be/mVTscDhdZik](https://youtu.be/mVTscDhdZik)

@tyler.okland

![](https://cdn.commonstock.com/68a70c38375648dd4ed8acea21e11a5f647d3f7d2fd5473ad967bf8bb386562d-1200x840.png)

Undefined

Fat Baby Funds

Market pricing in that it likely will struggle to ever turn a meaningful profit, something that isn’t improbable by any sense imo. Have seen a lot of talk about ancillary potential but the period where they had the most operating leverage is already gone, makes the business model seem shaky at best and untenable at worst

Strat Becker

$OPEN is essentially removing realtors from the home buying equation. I can see to s of resistance to iBuying because of it.

Dissecting the Markets

Rihard Jarc

Real estate disruptor Opendoor uses deep learning to figure the right price for a house. Still, its head of data science says deep learning is a tool to uncover something deeper, something about the structure underlying all phenomena.

https://www.zdnet.com/article/opendoor-discusses-the-secret-sauce-a-deeper-mechanism-to-the-world/

Opendoor discusses the secret sauce: 'A deeper mechanism to the world'

Opendoor makes buying and selling your home possible completely online. But should you invest in the company that is reinventing life’s most important transa...

Opendoor Investing Discussion (With Tyler Okland)

Opendoor

New position in OPEN

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