Opendoor Technologies – OPEN

Opendoor Technologies – OPEN

Opendoor Technologies – OPEN Jonathan Poland

Opendoor Technologies Inc. is a real estate technology company that simplifies the home buying and selling process, essentially buying the home and then flipping it themselves. Through an online platform, the company makes cash offers on homes that need redevelopment or updating, make repairs and then put them back on the market while trying to lower broker fees. That is where the problem arises. Founded in 2014 and based in San Francisco, Opendoor offers a streamlined, hassle-free alternative to traditional real estate transactions.

as of February 7, 2023

In the last 12 months, Opendoor generated $16.5 billion in revenue, albeit at a net loss of $1.1 billion. What is the company’s path to profitability? In 2021, the total residential real estate market had more than $2.8 trillion. There is a lot of room for disruption since the average closing costs and commissions on a home sale can run as high as 10% with a baseline around 7% even on all-cash deals. That’s a $200 billion opportunity just on the residential side in the U.S. In the last 12 months, Opendoor generated $16.5 billion in revenue, albeit at a net loss of $1.1 billion. What is the company’s path to profitability? In 2021, the total residential real estate market had more than $2.8 trillion. There is a lot of room for disruption since the average closing costs and commissions on a home sale can run as high as 10% with a baseline around 7% even on all-cash deals. That’s a $200 billion opportunity just on the residential side in the U.S. This is another price to sales play for someone that can take on the risk. The company generates nearly $6 million in sales per employee, or $26 per share, and has seen a 23 times increase on the top line since 2017. Since it buys houses outright, the company’s revenue could continue to see geometrical growth in revenue over the coming years.

Latest Updates
First Republic Bank – FRC Jonathan Poland

First Republic Bank – FRC

First Republic Bank and its subsidiaries offer private banking, private business banking, and private wealth management services to clients in…

Western Alliance – WAL Jonathan Poland

Western Alliance – WAL

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank, offering various banking products and related services…

KeyCorp – KEY Jonathan Poland

KeyCorp – KEY

KeyCorp (KEY) is a financial services company based in Cleveland, Ohio, USA, established in 1849. It is one of the…

Zions Bancorporation – ZION Jonathan Poland

Zions Bancorporation – ZION

Zions Bancorporation is a bank holding company headquartered in Salt Lake City, Utah. Zions Bancorporation has historical and cultural ties…

SVB Financial – SIVB Jonathan Poland

SVB Financial – SIVB

SVB Financial Group is a financial services company headquartered in Santa Clara, California. It is the parent company of Silicon…

Laird Superfood – LSF Jonathan Poland

Laird Superfood – LSF

Laird Superfood is a health and wellness company that was founded in 2015 by Laird Hamilton, a renowned big wave…

Hercules Capital – HTGC Jonathan Poland

Hercules Capital – HTGC

Hercules Capital, Inc. is a business development company. The company offers a range of financial solutions such as venture debt,…

Icahn Enterprises – IEP Jonathan Poland

Icahn Enterprises – IEP

Icahn Enterprises L.P. is a diversified holding company headquartered in New York City, founded and chaired by billionaire investor Carl…

Advanced Micro Devices – AMD Jonathan Poland

Advanced Micro Devices – AMD

Advanced Micro Devices Inc. (AMD) is an American multinational semiconductor company that designs and manufactures computer processors, graphics processing units…

Read More →

Jonathan Poland (“JP”) is a publisher, not a registered investment advisor, and nothing on this website is intended, and it should not be construed, to be investment advice. Under no circumstances does any information posted on this website represent a recommendation to buy or sell a security. The information on this site is not intended to be, nor does it constitute investment advice or recommendations. In no event shall JP be liable to any visitor or third party for any damages of any kind arising out of the use of any content or other material published or available on this site, or relating to the use of, or inability to use, any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Past performance does not guarantee future results. Read the full legal disclaimer.

Introducing Key Bridge

A private membership for the pursuit of
profit and progress. A service dedicated to
building better assets and tackling global
challenges to advance the greater good.
Visit the website to learn more.