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

Core Insights - Opendoor Technologies is currently a money-losing start-up, which is a critical factor for potential investors to consider before purchasing the stock [1] - The company is attempting to scale its house flipping business model, which may not be feasible at an institutional level due to its history of financial losses [4] Business Model Analysis - Opendoor operates as a house flipper, providing home sellers with a quick sale, then renovating and reselling the properties [3] - The challenge lies in the company's ambition to flip thousands of homes, which raises questions about the scalability of its core business model [4] Leadership and Strategy - In 2025, Opendoor appointed a new CEO, Kaz Nejatian, who emphasized the importance of artificial intelligence in the company's future strategy [5] - There are concerns that the transition to AI may lead to staff reductions, and it remains uncertain whether AI can outperform the company's previous human employees in house flipping [6] Performance Monitoring - The new CEO has set performance targets for investors to track, suggesting that it may be prudent for investors to wait for the company to achieve these milestones before investing [7] - The timeline for assessing the success of the new business approach could extend over a year, and continued financial losses may jeopardize Opendoor's viability as a business [7]