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Early Heads Up For Patreons: Opendoor Stock at $22.73 is a Huge Opportunity

🕑 Added 2021-01-04 09:41:16 +0000 UTC

Comments

Anthony Hunter

I'm also bullish and will hold long term. My question for you though, why Opendoor and not Redfin or Zillow? Everything I've found online is focused on their profitability and how they won't get the margins they need to make this work long term. I watched a few videos and I feel like the CEO has a vision of basically little to no profit from the flip but to squeeze you while you're in the funnel with value add services that make it more convenient for the buyer and seller. Also interesting they are looking to continue relationship with other continuing services. I like the vision and I'm on board but everyone points to Zillow and Redfin as too much competition. I suppose the TAM is big enough for everyone?

Allen Liu

haven't looked into as much as you, maybe tom can comment

Zachary T

The business has 2 components: 1) service which is replacing the realtor, but even with streamlining the process it still has to pay for someone to take the buyers to examine the property. That service may have a good margin but it is not a game changer with Zillow and Redfin also doing the same thing. 2) the investing component which is a flipping business. This component is capital intensive and even though the margin maybe attractive for an individual/mom and pop operation, the average for the big players is around 3-5%. This is the reason why developers don’t flip. As I have commented, with so much cash flooding the market “I buy ugly houses with cash” sign on almost every block of any suburb, OpenDoor, Zillow, Redfin, etc. can be a profitable company but not really a good investing company. How can they grow?

Allen Liu

well, it allows real estate to be a more liquidatable asset. It all depends on the person using the service. I would say if you were cash strapped and needed to sell the house in a day it would be a good option, instead of declaring bankruptcy.

Zachary T

I disagree with this one Tom. The margin on flipping properties for OpenDoor at best in 5 years is 4%. With money flooding the market and labor cost rising, there is no way it can find enough properties to flip and manage a 4% margin. Zillow and Redfin are not kids either. I watched some clips of the CEO and he doesn’t strike me as someone with a tunnel vision. I know Cathy is in on this one and Chamath is a good investor but technology cannot disrupted this industry unless it can somehow incorporate 3D Printing in the construction process.

Wilfredo José

Thanks I got it at 22.32!

NS

True that! I am getting late on SPAC ship but so far I am either investing on the investor OR when dust settles after a good merger announcement.

Timjulian

Got in at 22.8. 👊🏻 thanks

EV Bike Dude

Aha, thanks for the clarification! William.

Generico Fakero

I got it at 22.8 with about $8000 investment. Long term.

Generico Fakero

yes. wanted to give you a heads up before everyone.

Generico Fakero

I added current price. Let me see how I can give pivot options.

Generico Fakero

the usual SPAC issues: initial dip is guaranteed, now it will start climbing up long term since its a good business. SPAC are risky when they invest in shit companies, but this one is legit.

Generico Fakero

what price is it showing you? that is strange

Generico Fakero

Big fan of Ark - but I think they run a number of ETFs. I think they have shares in SPACs maybe that what you meant right?

Edgar Arevalo

Thank you! :)

Juan

Perfect timing Tom. Thanks a lot.

Sai Nagarajan

Thanks. Already made my annual fee and some more. Appreciate the info!

Andy Handy

thank you Tom I got some share at 22,75 open house , spasibo horosho

Nick

Are you going to do a video on the DCF for this one?

William D Edwards

People getting suckered by company calling itself ARK CAPITAL who is putting itself out there as a SPAC LOOKING for the highly disruptive innovative tech or bio private company. I saw that ARK was funding a SPAC merger and I thought immediately that it was ARK. Getting tricksy those fraudsters are. In my opinion.

EV Bike Dude

Hi Tom, Could you maybe add a "current price" column to the spreadsheet please, i.e. a hot-link to some live data, or even to a closing price for the previous day or the like? Also, there should be a way to enable filtering (pivot table) in view only mode, so every one can change the sorting in their own view without messing up the sheet. Thanks.

NS

Thanks Tom! Since it's already merged could you please let us know how it being a SPAC can impact its future?

EV Bike Dude

ArkInvest? They are (active) fund managers I think, not a SPAC or did they do some SPAC meger at some point?

NS

How is ARK ETF's and SPACs connected?

Rick852

LaPlace: https://www.msn.com/en-us/money/news/opendoor-to-merge-with-spac-at-dollar48b-valuation-what-you-need-to-know/ar-BB194pt7

Laplace's demon

My Broker (XTB in Europe) doesn't have "OPEN" available, it has "IPOB" on NYSE, and the Company Name is "Opendoor Technologies Inc (OPEN)". Not sure if this is normal :)