Sometimes necessity is the mother of reinvention. That’s certainly true for Tyler and Lindsey Dobson, who’ve grossed over $1.1 million in the past five years by upcycling furniture and flipping homes. As the Dobsons shared with CNBC Make It, it all started when they started refinishing furniture they found on the street to save money furnishing their first home. Must Read They had a knack for seeing diamonds in the rough, and soon started selling their upcycled pieces, pulling in $500 a month. Then th ...

Core Viewpoint - Opendoor Technologies is embarking on a new strategy under its new CEO, which could lead to significant profitability or potential failure, resulting in a binary outcome for the company [1]. Company History - Opendoor went public via a SPAC merger in 2020 and primarily engages in home flipping, a practice traditionally dominated by local investors [2]. - The company's business model involves purchasing homes at low prices, renovating them, and selling them at higher prices [2]. Business Model and Operations - Opendoor offers convenience to home sellers by quickly purchasing homes, allowing them to avoid the complexities of the traditional selling process [3]. - The company has struggled to achieve profitability, with its income statement showing a lack of profits, leading to a decline in stock value prior to the CEO change [4]. Recent Developments - The appointment of Kaz Nejatian from Shopify as the new CEO has generated excitement on Wall Street, causing the stock price to rise from under $1 to over $10, although it has since stabilized around $6 [5]. - The price-to-sales ratio has increased significantly from 0.09 to 0.9, reflecting investor optimism despite the lack of sustainable earnings [5]. Strategic Initiatives - The new CEO's key initiative involves integrating artificial intelligence (AI) into the home-flipping business, which aims to reduce operating costs by replacing human employees [6]. - This AI integration aligns with current market trends, but its effectiveness in the unique and varied housing market remains uncertain [7]. Challenges and Risks - There is no straightforward fallback plan if the AI transition fails, as the loss of human employees could result in a significant loss of institutional knowledge [8]. - The investment in Opendoor is considered risky, with two potential outcomes: success leading to significant returns or failure resulting in operational difficulties [9].

Key Points Opendoor Technologies has risen to a market cap north of $5 billion on its appeal as a meme stock this year. The business itself is still languishing with revenue off by a third from its 2022 peak. The valuation is stiff, but Wall Street pros see revenue rising 15% next year on narrowing losses. 10 stocks we like better than Opendoor Technologies › You don't expect stocks with large market caps to have small price tags, but Opendoor Technologies (NASDAQ: OPEN) is a jumbo shrimp contra ...

fizkes/Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. While TV shows make home flipping look easy, in reality, it’s a high-risk investment. Professional flippers often put in a lot of sweat equity, or they have a network of trusted contractors who work at a fair rate. They also typically spend a lot of time analyzing real estate market trends to ensure they can make a profit. Must Read If you just dive into flipping without these advant ...

Core Insights - Renovated homes are still attracting online interest and selling faster than older homes, but the pricing power and returns for flipped homes have weakened due to higher mortgage rates affecting buyer demand [2][3][5] - The performance gap between flipped homes and older homes has narrowed compared to 2021, with flipped homes receiving fewer page views and spending more time on the market [4][5] Market Performance - Flipped homes have a median listing price of approximately $380,000, slightly lower than the $385,000 for other older homes, but they are typically smaller and have a higher price per square foot [3][4] - In October 2025, flipped homes received about 6.5% more page views per listing and spent roughly 10 fewer days on the market compared to older homes, a significant decrease from the 25% advantage in 2021 [4][5] Sales Dynamics - Among flipped homes listed in July 2025, the median sale price was at an 8.3% discount from the highest post-renovation listing price, compared to a 2.9% discount for older homes [5] - The typical flipped home was purchased at 51.4% of its metro's median single-family home price and listed at 87.8% of the median after renovation [6] Flip Factor - The "Flip Factor," a new metric introduced in the report, measures the price increase of flipped homes relative to their pre-renovation prices, with a national average of 36.4 percentage points [7][8] - Only eight U.S. metros saw flipped homes listed above the local median price, indicating that significant value addition through renovations is rare [8][11] Regional Insights - Pittsburgh and Cape Coral, FL, are notable for having flipped homes listed above the market median, with Pittsburgh showing a Flip Factor of 58.2 percentage points [10][11] - The report highlights that affordable markets tend to see the largest price jumps relative to the market, with several metros demonstrating significant Flip Factors [9][10]

Core Viewpoint - Opendoor Technologies has experienced significant volatility, with a notable decline in value in 2024, but has seen a remarkable recovery in 2023, gaining approximately 360% year-to-date as of November 28 [2][10]. Company Performance - The company's stock was previously a strong performer but has recently shown signs of stagnation, particularly after a rally from July to September [2][11]. - Trading volumes have decreased, indicating a potential decline in interest from retail investors, which may affect future stock performance [3][5]. Financial Health - Opendoor's financials remain concerning, with the company unprofitable and experiencing declining revenue, despite the recent stock rally [6][10]. - The gross profit margin has averaged only 8% over the past 12 months, highlighting challenges in profitability [9][10]. - The company has appointed a new CEO, Kaz Nejatian, who aims to improve efficiency through artificial intelligence, but skepticism remains regarding the ability to achieve profitability [8][9]. Market Position - The stock is currently trading at a low valuation of 1.2 times its trailing revenue, but the lack of profitability and growth raises concerns about further declines [12]. - The excitement from retail investors, which previously supported the stock's rise, appears to be waning, suggesting limited potential for future rallies unless financial conditions improve significantly [11].

Core Viewpoint - Opendoor Technologies is undergoing a significant business transformation with a new CEO and a shift towards becoming a software and AI company, presenting both potential rewards and substantial risks for investors [1][8]. Company Overview - Opendoor's business model involves buying homes, renovating them, and reselling at a higher price, a practice known as house flipping, which is typically executed by small investors rather than large public companies [3]. Financial Performance - The company has consistently lost money since going public via a SPAC merger, leading to a decline in stock value to penny stock levels [4]. - Following the appointment of a new CEO, the stock price surged despite no immediate changes in the company's operations [5]. Market Sentiment - Opendoor has become a meme stock, driven by investor emotions and speculation about future performance, which raises concerns about the sustainability of its stock price [6]. Strategic Direction - The new CEO has outlined a roadmap aiming for profitability by the end of 2026, emphasizing a transition to a software and AI-focused business model [8]. - Key initiatives include scaling acquisitions, improving unit economics and velocity, and enhancing operational leverage, with specific metrics provided for tracking progress [9]. Investment Considerations - The stock price increase post-CEO appointment may already reflect anticipated improvements, posing risks for new investors [11]. - The strategy of acquiring more homes increases risk if the company cannot sell them promptly, suggesting that current investments may expose investors to heightened risks [11]. Investor Suitability - Opendoor is likely not suitable for most investors, as the success of the new strategy will not be evident until at least the end of 2026, and much positive news is already factored into the stock's valuation [12].

Core Viewpoint - Opendoor Technologies is attempting to improve its financial health and margins through the use of artificial intelligence, despite recent earnings showing no significant progress [1][2]. Financial Performance - For the third quarter ended September 30, Opendoor's revenue declined by 34% year over year [3]. - The company's gross profit was only $66 million, resulting in a gross margin of 7.2%, a decrease from 7.6% in the prior year [3]. - The adjusted net loss for the past quarter was $61 million, compared to a true accounting loss of $90 million [5]. Profitability Outlook - Management claims that by the end of next year, the company will be on track to breakeven based on adjusted net income, which may not reflect true accounting earnings [4]. - The gross margin worsened in the last quarter, raising concerns about the company's ability to achieve breakeven [6]. Market Position - Opendoor's market capitalization is currently $6 billion, with a stock price of $8.13, having experienced a price range of $0.51 to $10.87 over the past year [7]. - Despite a stock price increase of over 400% this year, this surge is attributed more to hype around AI initiatives rather than improving fundamentals [8].

Core Insights - Opendoor Technologies has seen its stock price rise significantly, now valued at around $8, a 15-fold increase from mid-2025, despite reporting annual losses since its inception in 2014 [2] - The company has a market capitalization of $6 billion and has become a meme stock, attracting attention from individual investors known as the "Open Army" [2][3] - Recent leadership changes include the departure of CEO Carrie Wheeler and the return of co-founders Keith Rabois and Eric Wu to the board, along with the hiring of Kaz Nejatian from Shopify as the new CEO [3] Business Challenges - The fundamental economics of the home-flipping business are not scalable, making it difficult for Opendoor to achieve sustainable profitability [4] - Home buying and selling is labor- and capital-intensive, with varying local market conditions complicating operations across the 50 markets where Opendoor operates [5] - The experience of Zillow, a well-known iBuyer, serves as a cautionary tale, as it faced significant losses and operational challenges in its home-flipping business, ultimately leading to its exit from the market [6][7]

Core Viewpoint - Opendoor Technologies has experienced a dramatic stock price increase of over 1,600% in the last three months, following the appointment of new CEO Kaz Nejatian and a shift in investor sentiment, despite the company still being unprofitable as a home flipper [1][8][10]. Company Background - Opendoor's primary business model revolves around house flipping, which traditionally involves small investors buying homes at low prices, making minor improvements, and selling them for a profit [2]. - The company aims to scale this model into a larger business, but it has yet to achieve a full-year profit, remaining a money-losing startup [4]. Recent Developments - The company faced a warning from Nasdaq regarding potential delisting due to low stock prices, prompting plans for a reverse stock split, a common tactic in such situations [5]. - Following the departure of the previous CEO, Kaz Nejatian was hired from Shopify, with intentions to leverage artificial intelligence to enhance profitability [6][10]. Stock Performance - Opendoor's stock has surged significantly, trading around $9 after a low point, indicating a shift in market sentiment, although it remains classified as a penny stock [8]. - The stock's rise appears to be driven by emotional investor sentiment rather than fundamental changes in the company's operations [9]. Future Outlook - Investors are currently anticipating changes under the new CEO, but there is uncertainty regarding the actual impact of these changes on the company's financial performance [11][12]. - The potential for a significant pullback in stock price exists if the anticipated improvements do not materialize or take longer than expected [10][11].