Opendoor's Buyer Perks Are A 'Nothing Burger' — Business Model Still A Mystery, Says Hedge Funder

Core Viewpoint - Hedge fund manager George Noble has criticized Opendoor Technologies, Inc.'s new product offerings, questioning their effectiveness and the company's overall business model [1][2]. Group 1: Product Rollouts - Opendoor announced two new benefits for home buyers: a seven-day home test drive and a 100-day home warranty [1]. - Noble described these offerings as insignificant, suggesting they are unlikely to drive home purchases [2]. Group 2: Business Model Concerns - Noble raised concerns about Opendoor's profitability, highlighting the challenges of the iBuyer model, which includes thin margins, volatile property valuations, and high operational costs [3]. - The company has not shown a clear path to profitability and has reported annual losses since its inception [3]. - Other critics, including Martin Shkreli and Andrew Left, have labeled Opendoor as a poor investment, calling it "an obvious short" and a "science project in how to burn money" [4]. Group 3: Market Reaction - Following the criticism, Opendoor's stock price increased by 0.62%, reaching $8.11 [4].