What Long-Term Investors Should Understand About Opendoor Before Buying the Stock​

Core Viewpoint - Opendoor Technologies is undergoing a significant change in its business model, but it remains a money-losing startup, which may deter risk-averse investors [1] Group 1: Business Model and Scalability - Opendoor operates as a house flipper, providing home sellers with a quick sale, purchasing homes, renovating them, and selling them at a higher price [2] - The challenge lies in Opendoor's attempt to scale this model to thousands of homes, raising concerns about the feasibility of institutional-level home flipping given its history of losses [3] Group 2: Leadership and AI Integration - In 2025, Opendoor appointed a new CEO, Kaz Nejatian, who emphasized the importance of "artificial intelligence" in the company's future strategy [4] - The transition to AI may lead to staff reductions, and there is uncertainty about whether AI can outperform the previous human workforce in house flipping [6] Group 3: Performance Monitoring - The new CEO has set performance targets for investors to track, suggesting that it may be prudent for investors to wait for evidence of success before investing [7]