The real estate industry is also in the midst of a paradigm shift, as it embraces a digital transformation. For example, Opendoor Technologies (NASDAQ:OPEN) developed an app-based platform that makes buying and selling a home a cinch. Homeowners can sell their property directly to Opendoor, which will then renovate and sell the home at a profit, or they can choose to sell to other buyers, all for a flat fee of 5% of the home’s value. By eliminating the need for the traditional real estate agent, the company is carving out a growing and profitable niche for itself.
Like many real estate companies, Opendoor was initially hit by the pandemic, but it’s staging a comeback. While revenue slipped 46% year over year, the company’s gross profit margin grew to 8.5% of sales, up from 6.4%. The pandemic-driven housing boom should help Opendoor further scale its business. The company was still unprofitable in 2020, but it cut its net loss by 15%.
ARK Next Generation Internet (NYSEMKT:ARKW) ETF and ARK Fintech Innovation (NYSEMKT:ARKF) both scooped up shares of Opendoor last week. The company is a significant holding for both funds, representing 2.32% and 2.83%, respectively, of the funds’ holdings. The digital revolution is still in the early stages in the real estate industry, and with a market cap of just $13 billion, Opendoor could eventually be a 10-bagger from here.
No. The lawyers will keep them in business. The legal system forced the RE business to be like the legal business where buyers and sellers are adversaries. Plus the lawyers change the CAR contracts on a daily basis. 10 pages long now in CA. With hundreds of supporting documents.
I just contacted Opendoor about selling a house. They immediately pimped me out to Realtor.com trying to get the listing. A total scam like most millennial’s favorite stocks. I personally believe that this generation is as gullible as the dot.com idiots. This ARKK evangelical movement is going to end badly.
So every time I hear shit that doesn’t make sense or is too out there for ordinary people to comprehend or is total fantasy like EV and AT I want to puke.
Redfin buys homes now too. So there’s zilliow, redfin, open, and fly homes. The margins are crazy low, so I can’t see how this is a good idea. They’ll do great now with prices rising so fast, but once there’s a market downturn they’ll all go bust.
Been a flipping for 45 years . These millennial Internet flip companies are idiots. Flipping is about buying right in an up market and cost control. I bought several houses 7 years ago and let the market do the work. If they did indeed buy right, why sell?. If not, there is nothing they can do when the market tanks
I knew that this was not your ad… just was wondering what makes them special.
But I failed to understand the greatness of things before. What is so special about putting together a web site that allows users to upload and share videos? Seems like it could be built in a weekend, I thought 15+ years ago. (YouTube)
We all do. Looking around the corner is hard. Who would have thought AMZN could evolve from an online bookstore to now? Who would have thought AAPL could break out of the encirclement by WinTel camp? Is why I have stopped being a smart ass trying to do fundamental analysis, I am not that good. However, I think I can roughly gauge a founder-CEO ambition, vision and competency by reading about their business strategies, response to threats, career background and public speeches (yes, you need to watch them talk if you want to put serious money in*)
*For example, I wanted to invest in YHOO! for a turnaround play after reading so much hype story about her competency but after watching how she talks,
First thing first, didn’t watch your YouTube. I watched a couple of her speeches. Come across as a nerd who don’t have a vision which is what she is onboard to do. In one of the speech, she talks about how she determines that news is the most widely used YHOO! which make me laugh… sound like an engineer rather than like an entrepreneur. I didn’t hear any vision and how she is executing according to the vision nor a sense of a shrewd strategy e.g. Apple iPod is a shrewd first step to break away from WinTel camp by not doing a frontal attack at the core but by placing many little seemingly weak ants which would eventually come to encircle the core.
Although I didn’t watch the video, I don’t like the title (may not be her speech). Is she implying she wants to turn Yahoo into another Google? If yes, then she is charging up the wrong tree. That is not vision! Should be an entire different animal yet pivot Yahoo! strength. Holding a stake in BABA is a strength but all she wants to do is to sell BABA without minimal tax implications?
by reading about their business strategies, response to threats, career background and public speeches (yes, you need to watch them talk if you want to put serious money in*)
