Opendoor Is 'Total Garbage,' This Hedge Fund Manager Says: 'The Business Model Does Not Work' - Opendoor Technologies (NASDAQ:OPEN)

Core Viewpoint - Hedge fund manager George Noble has criticized Opendoor Technologies Inc., stating that the company's business model is fundamentally flawed and unsustainable, despite a significant stock rally of 1,776% since June [1][2]. Business Model Analysis - Noble described Opendoor as "total garbage," emphasizing that the company has incurred losses every year since its inception and that its unit economics are "atrocious" [2]. - He believes that the ongoing cost-cutting measures will not significantly alter the company's long-term prospects, asserting that investors should not be misled by speculative trends [2]. Comparisons with Competitors - Noble compared Opendoor's valuation metrics with those of Compass Inc., noting that Opendoor trades at 22 times enterprise value to revenues, while Compass is valued at only 0.9 times and is profitable with a strong balance sheet [2]. Investor Sentiment and Market Reactions - Despite the stock's recent rally, there is a growing number of critics, including Martin Shkreli, who has taken a short position against Opendoor, labeling it an "obvious short" and planning to conduct thorough due diligence [4]. - Citron Research, led by Andrew Left, has also criticized Opendoor, calling it a "stock promo" and highlighting flaws in its business strategy [5]. Stock Performance - Opendoor shares closed at $9.57, down 3.72% on Friday, with an additional pre-market decline of 1.67% [6].